[Federal Register Volume 65, Number 70 (Tuesday, April 11, 2000)]
[Proposed Rules]
[Pages 19580-19604]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-8846]



[[Page 19579]]

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Part V





Federal Communications Commission





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47 CFR Part 1



Assessment and Collection of Regulatory Fees for Fiscal Year 2000; 
Proposed Rule

  Federal Register / Vol. 65, No. 70 / Tuesday, April 11, 2000 / 
Proposed Rules  

[[Page 19580]]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 1

[MD Docket No. 00-58; FCC 00-117]


Assessment and Collection of Regulatory Fees for Fiscal Year 2000

AGENCY: Federal Communications Commission.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Commission is proposing to revise its Schedule of 
Regulatory Fees in order to recover the amount of regulatory fees that 
Congress has required it to collect for fiscal year 2000. Section 9 of 
the Communications Act of 1934, as amended, provides for the annual 
assessment and collection of regulatory fees. For fiscal year 2000 
sections 9(b)(2) and (3) provide for annual ``Mandatory Adjustments'' 
and ``Permitted Amendments'' to the Schedule of Regulatory Fees. These 
revisions will further the National Performance Review goals of 
reinventing Government by requiring beneficiaries of Commission 
services to pay for such services.

DATES: Comments are due on or before April 24, 2000, and reply comments 
are due on or before May 5, 2000.

FOR FURTHER INFORMATION CONTACT: Terry Johnson, Office of Managing 
Director at (202) 418-0445 or Roland Helvajian, Office of Managing 
Director at (202) 418-0444.

SUPPLEMENTARY INFORMATION:
Adopted: March 29, 2000; Released: April 3, 2000.

    By the Commission:

                            Table of Contents
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                          Topic                           Paragraph Nos.
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I. Introduction.........................................               1
II. Background..........................................               4
III. Discussion
    A. Summary of FY 2000 Fee Methodology...............               8
    B. Development of FY 2000 Fees
        i. Adjustment of Payment Units..................              12
        ii. Calculation of Revenue Requirements.........              13
        iii. Recalculation of Fees......................              14
        iv. Proposed Changes to Fee Schedule............              15
            a. INTELSAT.................................              16
            b. Interstate Telephone Service Providers...              18
    C. Procedures for Payment of Regulatory Fees........              22
        i. Annual Payments of Standard Fees.............              23
        ii. Installment Payments for Large Fees.........              24
        iii. Advance Payments of Small Fees.............              25
        iv. Minimum Fee Payment Liability...............              26
        v. Standard Fee Calculations and Payments.......              27
    D. Schedule of FY 2000 Regulatory Fees..............              29
IV. Procedural Matters
    A. Comment Period and Procedures....................              30
    B. Ex Parte Rules...................................              34
    C. Initial Regulatory Flexibility Analysis..........              35
    D. Authority and Further Information................              36
Attachment A--Initial Regulatory Flexibility Analysis
Attachment B--Sources of Payment Unit Estimates For FY
 2000
Attachment C--Calculation of Revenue Requirements and
 Pro-Rata Fees
Attachment D--FY 2000 Schedule of Regulatory Fees
Attachment E--Comparison Between FY 1999 and FY 2000
 Proposed Regulatory Fees
Attachment F--Detailed Guidance on Who Must Pay
 Regulatory Fees
Attachment G--Description of FCC Activities
Attachment H--Factors, measurements and calculations
 that go into determining station signal contours and
 associated population coverages
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I. Introduction

    1. By this Notice of Proposed Rulemaking, the Commission commences 
a proceeding to revise its Schedule of Regulatory Fees in order to 
collect the amount of regulatory fees that Congress, pursuant to 
section 9(a) of the Communications Act, as amended, has required it to 
collect for Fiscal Year (FY) 2000.\1\
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    \1\ 47 U.S.C. 159(a).
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    2. Congress has required that we collect $185,754,000 through 
regulatory fees in order to recover the costs of our enforcement, 
policy and rulemaking, international and user information activities 
for FY 2000.\2\ This amount is $13,231,000 or approximately 7.67% more 
than the amount that Congress designated for recovery through 
regulatory fees for FY 1999.\3\ Thus, we are proposing to revise our 
fees in order to collect the increased amount that Congress has 
specified. Additionally, we propose to amend the Schedule in order to 
simplify and streamline it.\4\
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    \2\ Public Law 105-277 and 47 U.S.C. 159(a)(2).
    \3\ Assessment and Collection of Regulatory Fees for Fiscal Year 
1999, FCC 98-200, released June 18, 1999, 64 FR 35831 (Jul. 1, 
1999).
    \4\ 47 U.S.C. 159(b)(3).
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    3. In proposing to revise our fees, we adjusted the payment units 
and revenue requirement for each service subject to a fee, consistent 
with sections 159(b)(2) and (3). In addition, we are proposing changes 
to the fees pursuant to public interest considerations. The current 
Schedule of Regulatory Fees is set forth in Secs. 1.1152 through 1.1156 
of the Commission's rules.\5\
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    \5\ 47 CFR 1.1152 through 1.1156.
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II. Background

    4. Section 9(a) of the Communications Act of 1934, as amended, 
authorizes the Commission to assess and collect

[[Page 19581]]

annual regulatory fees to recover the costs, as determined annually by 
Congress, that it incurs in carrying out enforcement, policy and 
rulemaking, international, and user information activities.\6\ See 
Attachment G for a description of these activities. In our FY 1994 Fee 
Order,\7\ we adopted the Schedule of Regulatory Fees that Congress 
established, and we prescribed rules to govern payment of the fees, as 
required by Congress.\8\ Subsequently, we modified the fee Schedule to 
increase the fees in accordance with the amounts Congress required us 
to collect in each succeeding fiscal year. We also amended the rules 
governing our regulatory fee program based upon our experience 
administering the program in prior years.\9\
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    \6\ 47 U.S.C. 159(a).
    \7\ 59 FR 30984 (Jun. 16, 1994).
    \8\ 47 U.S.C. 159(b), (f)(1).
    \9\ 47 CFR 1.1151 et seq.
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    5. As noted, for FY 1994 we adopted the Schedule of Regulatory Fees 
established in section 9(g) of the Act. For fiscal years after FY 1994, 
however, sections 9(b)(2) and (3), respectively, provide for 
``Mandatory Adjustments'' and ``Permitted Amendments'' to the Schedule 
of Regulatory Fees.\10\ Section 9(b)(2), entitled ``Mandatory 
Adjustments,'' requires that we revise the Schedule of Regulatory Fees 
to reflect the amount that Congress requires us to recover through 
regulatory fees.\11\
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    \10\ 47 U.S.C. 159(b)(2), (b)(3).
    \11\ 47 U.S.C. 159(b)(2).
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    6. Section 9(b)(3), entitled ``Permitted Amendments,'' requires 
that we determine annually whether additional adjustments to the fees 
are warranted, taking into account factors that are in the public 
interest, as well as issues that are reasonably related to the payer of 
the fee. These amendments permit us to ``add, delete, or reclassify 
services in the Schedule to reflect additions, deletions or changes in 
the nature of its services.'' \12\
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    \12\ 47 U.S.C. 159(b)(3).
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    7. Section 9(i) requires that we develop accounting systems 
necessary to adjust our fees pursuant to changes in the costs of 
regulation of various services that are subject to a fee, and for other 
purposes.\13\ For FY 1997, we relied for the first time on cost 
accounting data to identify our regulatory costs and to develop our FY 
1997 fees based upon these costs. Also, for FY 1997, we limited the 
increase in the amount of the fee for any service in order to phase in 
our reliance on cost-based fees for those services whose revenue 
requirement would be more than 25 percent above the revenue requirement 
which would have resulted from the ``mandatory adjustments'' to the FY 
1997 fees without incorporation of costs. This methodology, which we 
continued to use for FY 1998, enabled us to develop regulatory fees 
which we believed would be more reflective of our costs of regulation, 
and allowed us to make revisions to our fees based on the fullest 
extent possible, while still consistent with the public interest, on 
the actual costs of regulating those services that are subject to a 
fee. However, we found that developing a regulatory fee structure based 
on cost information did not produce the desired results. We were 
anticipating that our regulatory costs would level off or, perhaps, 
decline causing these adjustments to decrease from the 25 percent 
towards zero. Since our regulatory costs have continued to rise, this 
methodology was discontinued. Therefore, we chose to base the FY 1999 
fees only on the basis of ``Mandatory Adjustments''. Finally, section 
9(b)(4)(B) requires us to notify Congress of any permitted amendments 
90 days before those amendments go into effect.\14\
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    \13\ 47 U.S.C. 159(i).
    \14\ 47 U.S.C. 159(b)(4)(B).
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III. Discussion

A. Summary of FY 2000 Fee Methodology

    8. As noted, Congress has required that the Commission recover 
$185,754,000 for FY 2000 through the collection of regulatory fees, 
representing the costs applicable to our enforcement, policy and 
rulemaking, international, and user information activities.\15\
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    \15\ 47 U.S.C. 159(a).
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    9. In developing our proposed FY 2000 fee schedule, we determined 
that we should continue to use the same general methodology for 
``Mandatory Adjustments'' to the Fee Schedule that we used in 
developing the FY 1999 fee schedule because our regulatory costs 
continue to rise, and using cost information to determine a regulatory 
fee schedule does not produce the desired result of collecting the 
amount required by Congress. Therefore, we estimated the number of 
payment units \16\ for FY 2000 in order to determine the aggregate 
amount of revenue we would collect without any revision to our FY 1999 
fees. Then we compared this revenue amount to the $185,754,000 that 
Congress has required us to collect in FY 2000 and pro-rated the 
difference among all the existing fee categories.
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    \16\ Payment units are the number of subscribers, mobile units, 
pagers, cellular telephones, licenses, call signs, adjusted gross 
revenue dollars, etc. which represent the base volumes against which 
fee amounts are calculated.
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    10. Once we established our tentative FY 2000 fees, we evaluated 
proposals made by Commission staff concerning ``Permitted Amendments'' 
to the Fee Schedule and to our collection procedures. These proposals 
are discussed in paragraphs 15-19 and are factored into our proposed FY 
2000 Schedule of Regulatory Fees, set forth in Attachment D.
    11. Finally, we have incorporated, as Attachment F, proposed 
Guidance containing detailed descriptions of each fee category, 
information on the individual or entity responsible for paying a 
particular fee and other critical information designed to assist 
potential fee payers in determining the extent of their fee liability, 
if any, for FY 2000.\17\ In the following paragraphs, we describe in 
greater detail our proposed methodology for establishing our FY 2000 
regulatory fees.
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    \17\ We also will incorporate a similar Attachment in the Report 
and Order concluding this rulemaking. That Attachment will contain 
updated information concerning any changes made to the proposed fees 
adopted by the Report and Order.
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B. Development of FY 2000 Fees

i. Adjustment of Payment Units
12. In calculating FY 2000 regulatory fees for each service, we 
adjusted the estimated payment units for each service because payment 
units for many services have changed substantially since we adopted our 
FY 1999 fees. We obtained our estimated payment units through a variety 
of means, including our licensee data bases, actual prior year payment 
records, and industry and trade group projections. Whenever possible, 
we verified these estimates from multiple sources to ensure the 
accuracy of these estimates. Attachment B provides a summary of how 
revised payment units were determined for each fee category.\18\
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    \18\ It is important to also note that Congress' required 
revenue increase in regulatory fee payments of approximately 7.67 
percent in FY 2000 will not fall equally on all payers because 
payment units have changed in several services. When the number of 
payment units in a service increase from one year to another, fees 
do not have to rise as much as they would if payment units had 
decreased or remained stable. Declining payment units have the 
opposite effect on fees.
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ii. Calculation of Revenue Requirements
    13. We next multiplied the revised payment units for each service 
by the FY 1999 fees for each category to determine how much revenue we 
would collect without any change to the FY 1999 Schedule of Regulatory 
Fees. The

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amount of revenue which we would collect without changes to the Fee 
Schedule is approximately $191.6 million. This amount is approximately 
$5.9 million more than the amount the Commission is required to collect 
in FY 2000. We then adjusted the revenue requirements for each category 
on a proportional basis, consistent with section 9(b)(2) of the Act, to 
obtain an estimate of the revenue requirements for each fee category so 
that the Commission could collect $185,754,000 as required by Congress. 
Attachment C provides detailed calculations showing how we determined 
the revised revenue amounts to be raised for each service.
iii. Recalculation of Fees
    14. Once we determined the revenue requirement for each service and 
class of licensee, we divided the revenue requirement by the number of 
estimated payment units (and by the license term, if applicable, for 
``small'' fees) to obtain actual fee amounts for each fee category. 
These calculated fee amounts were then rounded in accordance with 
section 9(b)(3) of the Act. See Attachment C.
iv. Proposed Changes to Fee Schedule
    15. We examined the results of our calculations to determine if 
further adjustments of the fees and/or changes to payment procedures 
were warranted based upon the public interest and other criteria 
established in 47 U.S.C. 159(b)(3).\19\ As a result of this review, we 
are proposing the following ``Permitted Amendments'' to our Fee 
Schedule:
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    \19\ In FY 1997 and FY 1998 we limited increases to 25%. For FY 
1999 and FY 2000, none of the proposed fee increases exceed 25%.
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a. INTELSAT Satellites

    16. The Commission, relying on portions of the legislative history 
of section 9, previously concluded that Comsat was exempt from section 
9 fees for its INTELSAT space stations. Assessment and Collection of 
Regulatory Fees for Fiscal Year 1998, 13 FCC Rcd 19820 (1998), 63 FR 
35847 (July 1, 1998); Assessment and Collection of Regulatory Fees for 
Fiscal Year 1997, 12 FCC Rcd 17161 (1997), 62 FR 37408 (July 11, 1997). 
In PanAmSat Corp. v. FCC, 198 F.3d 890 (D.C.Cir.1999), the court found 
that neither the statute itself nor the legislative history relied upon 
by the Commission was conclusive on the question of Comsat's liability 
for section 9 fees in these circumstances. It remanded the issue to the 
Commission for reconsideration of Comsat's exemption.\20\
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    \20\ As directed by the court, the Commission will consider the 
section 9 satellite fees for FY 1998; however, that consideration 
will be separate from this proceeding.
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    17. On March 17, 2000 Congress enacted the Open Market 
Reorganization for the Betterment of International Telecommunications 
Act (the ORBIT Act).\21\ Section 641[c] of the ORBIT Act provides:
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    \21\ Public Law 106-180, 114 Stat. 48 (2000).

    ``[c] PARITY of TREATMENT--Notwithstanding any other law or 
executive agreement, the Commission shall have the authority to 
impose similar regulatory fees on the United States signatory which 
it imposes on other entities providing similar services.'' \22\
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    \22\ Comsat is the United States Signatory to INTELSAT.

In light of this statutory language, it is clear that, for FY 2000, 
Comsat as the United States signatory to INTELSAT is subject to 
regulatory fees.\23\ We request comment on how we should implement this 
provision to achieve parity of treatment between Comsat and satellite 
operators that are subject to regulatory fees. Specifically, we request 
comment on whether for the year 2000 we should assess regulatory fees 
for all space stations in geostationary orbit, including satellites 
that are the subject of Comsat's activities, in the amount of $94,650 
per satellite. Such comments also may address how the nature of Comsat 
services via INTELSAT may provide a basis for a different fee and state 
what type of fee would be appropriate to achieve parity of 
treatment.\24\
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    \23\ As directed by the court, the Commission will also consider 
the Section 9 fees for FY 1998; however, that consideration will be 
separate from this proceeding.
    \24\ Note that without the INTELSAT satellites, the fee per 
satellite would be $126,525.
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b. Interstate Telephone Service Providers

    18. The Commission is required under the Communications Act of 
1934, as amended,\25\ to establish procedures that will finance 
interstate telecommunications relay services (TRS), universal service 
support mechanisms, administration of the North American Numbering Plan 
(NANPA), and shared costs of the local number portability (LNPA) 
program. In a series of separate proceedings, the Commission has 
already established procedures that permits the administrators of these 
programs to collect contributions from all providers of 
telecommunications services in support of the above mandates.\26\ In 
1999, as part of its paperwork streamlining efforts, the Commission 
amended its rules and required contributors to file only a single form 
FCC Form 499-A, Telecommunications Reporting Worksheet, and eliminated 
FCC Form 431, TRS Fund Worksheet.\27\ Previously, Form 431, TRS Fund 
Worksheet, was used to obtain base revenue data from which telephone 
services regulatory fees were calculated. Because of this form change, 
it is no longer feasible to obtain base telephone services revenue data 
using adjusted gross interstate revenues as derived from data 
previously provided on FCC Form 431, TRS Fund Worksheet. Therefore, 
beginning in FY 2000, we are proposing that the interstate telephone 
services regulatory fee be derived from interstate and international 
end-user revenues data submitted on FCC Form 499-A, Telecommunications 
Reporting Worksheet, rather than from data provided on Form 431, TRS 
Fund Worksheet. A copy of the form and instructions can be downloaded 
at: http://www.fcc.gov/formpage.html>.
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    \25\ 47 U.S.C. 151, 225, 251, 254.
    \26\ These contributions are separate and apart from regulatory 
fees collected to fund the Commission's operations.
    \27\ 1998 Biennial Regulatory Review--Streamlined Contributor 
Reporting Requirements Associated with Administration of 
Telecommunications Relay Services, North American Numbering Plan, 
Local Number Portability, and Universal Service Support Mechanisms, 
Report and Order, FCC 99-175, CC Docket No. 98-171 (rel. July 14, 
1999), 64 FR 41320 (July 30, 1999)(Contributor Reporting 
Requirements Order).
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    19. All providers of telecommunications services within the United 
States, with very limited exceptions, must file an FCC Form 499-A, 
Telecommunications Reporting Worksheet. For this filing, the United 
States is defined as the contiguous United States, Alaska, Hawaii, 
American Samoa, Baker Island, Guam, Howland Island, Jarvis Island, 
Johnston Atoll, Kingman Reef, Midway Island, Navassa Island, the 
Northern Mariana Islands, Palmyra, Puerto Rico, the U.S. Virgin 
Islands, and Wake Island. Each legal entity that provides interstate 
telecommunications service for a fee, including each affiliate or 
subsidiary of an entity, must complete and file separately a copy of 
the Telecommunications Reporting Worksheet.
    20. For purposes of determining who must file Form 499-A, the term 
``telecommunications'' means the transmission, between or among points 
specified by the user, of information of the user's choosing, without 
change in the form or content of the information as sent and received. 
For the purpose of

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filing the Telecommunication Reporting Worksheet, the term ``interstate 
telecommunications'' includes, but is not limited to, the following 
types of services: wireless telephony including cellular and personal 
communications services (PCS); paging and messaging services; dispatch 
services; mobile radio services; operator services; access to 
interexchange service; special access; wide area telecommunications 
services (WATS); subscriber toll-free services; 900 services; message 
telephone services (MTS); private line; telex; telegraph; video 
services; satellite services; and resale services. For example, all 
local exchange carriers provide access services and, therefore, provide 
interstate telecommunications. Included are entities that offer 
interstate telecommunications services for a fee to the public, even if 
only a narrow or limited class of users could use the services. Also 
included are entities that provide interstate telecommunications 
services to entities other than themselves for a fee on a private, 
contractual basis. In addition, owners of pay telephones, sometimes 
referred to as ``pay telephone aggregators,'' must file the worksheet. 
Most telecommunications carriers must file the worksheet even if they 
qualify for the de minimis exemption under the commission's rules for 
universal service.\28\
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    \28\ 47 CFR 54.708.
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    21. With the introduction of a new form, FCC Form 499-A, it is no 
longer feasible to base the interstate telephone services regulatory 
fee on the adjusted gross interstate revenues because this data was 
derived from a previously used form (FCC 431) to contribute to the 
Telecommunication Relay Services Fund. Therefore, beginning in FY 2000, 
we are proposing that the interstate and international telephone 
services regulatory fee be derived from interstate and international 
end-user revenues as submitted by providers on FCC Form 499-A, 
Telecommunications Reporting Worksheet, as part of the 
telecommunications provider reporting requirements. The following 
providers are exempt from paying the interstate telephone service 
provider regulatory fees: interstate service providers that have mobile 
service or satellite service revenue, but no local or toll service; 
\29\ government entities within the meaning of the term 47 CFR 1.1162; 
and carriers whose payment obligation would be less than $10.\30\ Note, 
the interstate telephone service provider fee is based on interstate 
and international end-user revenues for local and most toll services 
only. Filers are not allowed to deduct any expenses from subject 
interstate and international end-user revenues.
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    \29\ However, these service providers may be subject to payment 
of regulatory fees under other categories, e.g. space stations.
    \30\ See 47 U.S.C. 159(h); see also para 29, infra.
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C. Procedures for Payment of Regulatory Fees

    22. Generally, we propose to retain the procedures that we have 
established for the payment of regulatory fees. Section 9(f) requires 
that we permit ``payment by installments in the case of fees in large 
amounts, and in the case of small amounts, shall require the payment of 
the fee in advance for a number of years not to exceed the term of the 
license held by the payer.'' See 47 U.S.C. 159(f)(1). Consistent with 
section 9(f), we are again proposing to establish three categories of 
fee payments, based upon the category of service for which the fee 
payment is due and the amount of the fee to be paid. The fee categories 
are (1) ``standard'' fees, (2) ``large'' fees, and (3) ``small'' fees.
i. Annual Payments of Standard Fees
    23. As we have in the past, we are proposing to treat regulatory 
fee payments by certain licensees as ``standard fees'' which are those 
regulatory fees that are payable in full on an annual basis. Payers of 
standard fees are not required to make advance payments for their full 
license term and are not eligible for installment payments. All 
standard fees are payable in full on the date we establish for payment 
of fees in their regulatory fee category. The payment dates for each 
regulatory fee category will be announced either in the Report and 
Order terminating this proceeding or by public notice in the Federal 
Register pursuant to authority delegated to the Managing Director.
ii. Installment Payments for Large Fees
    24. While we are mindful that time constraints may preclude an 
opportunity for installment payments, we propose that regulatees in any 
category of service with a liability of $12,000 or more be eligible to 
make installment payments and that eligibility for installment payments 
be based upon the amount of either a single regulatory fee payment or 
combination of fee payments by the same licensee or regulatee. We 
propose that regulatees eligible to make installment payments may 
submit their required fees in two equal payments (on dates to be 
announced) or, in the alternative, in a single payment on the date that 
their final installment payment is due. Due to statutory constraints 
concerning notification to Congress prior to actual collection of the 
fees, however, it is unlikely that there will be sufficient time for 
installment payments, and that regulatees eligible to make installment 
payments will be required to pay these fees on the last date that fee 
payments may be submitted. The dates for installment payments, or a 
single payment, will be announced either in the Report and Order 
terminating this proceeding or by public notice published in the 
Federal Register pursuant to authority delegated to the Managing 
Director.
iii. Advance Payments of Small Fees
    25. As we have in the past, we are proposing to treat regulatory 
fee payments by certain licensees as ``small'' fees subject to advance 
payment consistent with the requirements of section 9(f)(2). We propose 
that advance payments will be required from licensees of those services 
that we decided would be subject to advance payments in our FY 1994 
Report and Order, and to those additional payers set forth herein.\31\ 
We are also proposing that payers of advance fees will submit the 
entire fee due for the full term of their licenses when filing their 
initial, renewal, or reinstatement application. Regulatees subject to a 
payment of small fees shall pay the amount due for the current fiscal 
year multiplied by the number of years in the term of their requested 
license. In the event that the required fee is adjusted following their 
payment of the fee, the payer would not be subject to the payment of a 
new fee until filing an application for renewal or reinstatement of the 
license. Thus, payment for the full license term would be made based 
upon the regulatory fee applicable at the time the application is 
filed. The effective date for payment of small fees established in this 
proceeding will be announced in our Report and Order terminating this 
proceeding or by public notice published in the Federal Register 
pursuant to authority delegated to the Managing Director.
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    \31\ Applicants for new, renewal and reinstatement licenses in 
the following services will be required to pay their regulatory fees 
in advance: Land Mobile Services, Microwave Services, Marine (Ship) 
Service, Marine (Coast) Service, Private Land Mobile (Other) 
Services, Aviation (Aircraft) Service, Aviation (Ground) Service, 
General Mobile Radio Service (GMRS), 218-219 MHz Service (if any 
applications should be filed), Rural Radio Service, and Amateur 
Vanity Call Signs.
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iv. Minimum Fee Payment Liability
    26. As we have in the past, we are proposing that regulatees whose 
total regulatory fee liability, including all categories of fees for 
which payment is due by an entity, amounts to less than

[[Page 19584]]

$10 will be exempted from fee payment in FY 2000.
v. Standard Fee Calculations and Payment Dates
    27. As noted, the time for payment of standard fees and any 
installment payments will be announced in our Report and Order 
terminating this proceeding or will be published in the Federal 
Register pursuant to authority delegated to the Managing Director. For 
licensees, permittees and holders of other authorizations in the Common 
Carrier, Mass Media, and Cable Services whose fees are not based on a 
subscriber, unit, or circuit count, we are proposing that fees be paid 
for any authorization issued on or before October 1, 1999. Regulatory 
fees are due and payable by the holder of record of the license or 
permit of the service as of October 1, 1999. A pending change in the 
status of a license or permit that is not granted as of that date is 
not effective, and the fee is based on the classification that existed 
on that date. Where a license or authorization is transferred or 
assigned after October 1, 1999, the fee shall be paid by the licensee 
or holder of the authorization on the date that the payment is due.
    28. In the case of regulatees whose fees are based upon a 
subscriber, unit or circuit count, the number of a regulatee's' 
subscribers, units or circuits on December 31, 1999, will be used to 
calculate the fee payment. \32\ Regulatory fees are due and payable by 
the holder of record of the license or permit of the service as of 
December 31, 1999. A pending change in the status of a license or 
permit that is not granted as of that date is not effective, and the 
fee is based on the classification that existed on that date. Where a 
license or authorization is transferred or assigned after December 31, 
1999, the fee shall be paid by the licensee or holder of the 
authorization on the date that the payment is due.
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    \32\ Cable system operators are to compute their subscribers as 
follows: Number of single family dwellings + number of individual 
households in multiple dwelling unit (apartments, condominiums, 
mobile home parks, etc.) paying at the basic subscriber rate + bulk 
rate customers + courtesy and free service. Note: Bulk-Rate 
Customers = Total annual bulk-rate charge divided by basic annual 
subscription rate for individual households. Cable system operators 
may base their count on ``a typical day in the last full week'' of 
December 1999, rather than on a count as of December 31, 1999.
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D. Schedule of Regulatory Fees

    29. The Commission's proposed Schedule of Regulatory Fees for FY 
2000 is contained in Attachment D of this NPRM.

IV. Procedural Matters

A. Comment Period and Procedures

    30. Pursuant to Secs. 1.415 and 1.419 of the Commission's rules, 47 
CFR 1.415, 1.419, interested parties may file comments on or before 
April 24, 2000, and reply comments on or before May 5, 2000. Comments 
may be filed using the Commission's Electronic Comment Filing System 
(ECFS) or by filing paper copies.\33\
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    \33\ Electronic Filing of Documents in Rulemaking Proceedings, 
63 FR 24121 (1998).
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    31. Comments filed through the ECFS can be sent as an electronic 
file via the Internet to http://www.fcc.gov/e-file/ecfs.html>. 
Generally, only one copy of an electronic submission must be filed. 
However, if multiple docket or rulemaking numbers appear in the caption 
of this proceeding, commenters must transmit one electronic copy of the 
comments for each docket or rulemaking number referenced in the 
caption. In completing the transmittal screen, commenters should 
include their full name, Postal Service mailing address, and the 
applicable docket or rulemaking number. Parties may also submit an 
electronic comment by e-mail via Internet. To get filing instructions 
for e-mail comments, commenters should send an e-mail to [email protected], 
and should include the following words in the body of the message, 
``get form your e-mail address.>'' A sample form and directions will be 
sent in reply.
    32. Parties who choose to file by paper must file an original and 
four copies of each filing. If more than one docket or rulemaking 
number appear in the caption of this proceeding, commenters must submit 
two additional copies for each additional docket or rulemaking number. 
All filings must be sent to the Commission's Secretary, Magalie Roman 
Salas, Office of the Secretary, Federal Communications Commission, 445 
12th Street SW., TW-A325, Washington, DC 20554.
    33. Parties who choose to file by paper should also submit their 
comments on diskette. These diskettes should be submitted to: Terry 
Johnson, Office of Managing Director, Federal Communications 
Commission, 445 12th Street, SW., 1-C807, Washington, DC 20554. Such a 
submission should be on a 3.5 inch diskette formatted in an IBM 
compatible format using Microsoft TM Word 97 for Windows or 
compatible software. The diskette should be accompanied by a cover 
letter and should be submitted in ``read only'' mode. The diskette 
should be clearly labeled with the commenter's name, proceeding 
(including the lead docket number in this case MD Docket No. 00-58, 
type of pleading (comment or reply comment), date of submission, and 
the name of the electronic file on the diskette. The label should also 
include the following phrase ``Disk Copy--Not an Original.'' Each 
diskette should contain only one party's pleadings, preferably in a 
single electronic file. In addition, commenters must send diskette 
copies to the Commission's copy contractor, International Transcription 
Service, Inc., 1231 20th Street NW., Washington, DC 20036.
    Documents filed in this proceeding will be available for public 
inspection during regular business hours in the FCC Reference Center, 
of the Federal Communications Commission, Room CY-A257, 445 12th Street 
SW., Washington, DC 20554, and will be placed on the Commission's 
Internet Home Page http://www.fcc.gov.

B. Ex Parte Rules

    34. This is a permit-but-disclosed notice and comment rulemaking 
proceeding. Ex parte presentations are permitted, except during the 
Sunshine Agenda period, provided they are disclosed pursuant to the 
Commission's rules.\34\
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    \34\ 47 CFR 1.1202, 1.1203 and 1026(a).
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C. Initial Regulatory Flexibility Analysis

    35. As required by the Regulatory Flexibility Act,\35\ the 
Commission has prepared an Initial Regulatory Flexibility Analysis 
(IRFA) of the possible impact on small entities of the proposals 
suggested in this document. The IRFA is set forth as Attachment A. 
Written public comments are requested with respect to the IRFA. These 
comments must be filed in accordance with the same filing deadlines for 
comments on the rest of the NPRM, and must have a separate and distinct 
heading, designating the comments as responses to the IRFA. The 
Consumer Information Bureau, Reference Information Center, shall send a 
copy of this NPRM, including the IRFA, to the Chief Counsel for 
Advocacy of the Small Business Administration, in accordance with the 
Regulatory Flexibility Act.
---------------------------------------------------------------------------

    \35\ See 5 U.S.C. 603.
---------------------------------------------------------------------------

D. Authority and Further Information

    36. Authority for this proceeding is contained in sections 4(i) and 
(j), 9, and 303(r) of the Communications Act of 1934, as amended.\36\ 
It is ordered that this NPRM is adopted. It is further ordered that the 
Commission's Consumer Information Bureau, Reference Information Center, 
shall

[[Page 19585]]

send a copy of this NPRM, including the Initial Regulatory Flexibility 
Analysis, to the Chief Counsel for Advocacy of the Small Business 
Administration.
---------------------------------------------------------------------------

    \36\ 47 U.S.C. 154(i)-(j), 159, & 303(r).
---------------------------------------------------------------------------

    37. Further information about this proceeding may be obtained by 
contacting the Fees Hotline at (202) 418-0192.

Federal Communications Commission.
Magalie Roman Salas,
Secretary.

Attachment A: Initial Regulatory Flexibility Analysis

    1. As required by the Regulatory Flexibility Act (RFA),\37\ the 
Commission has prepared this Initial Regulatory Flexibility Analysis 
(IRFA) of the possible significant economic impact on small entities by 
the policies and rules proposed in the present Notice of Proposed 
Rulemaking, In the Matter of Assessment and Collection of Regulatory 
Fees for Fiscal Year 2000. Written public comments are requested on 
this IRFA. Comments must be identified as responses to the IRFA and 
must be filed by the deadlines for comments on the IRFA provided in 
paragraph 33. The Commission will send a copy of the NPRM, including 
the IRFA, to the Chief Counsel for Advocacy of the Small Business 
Administration.\38\ In addition, the NPRM and IRFA (or summaries 
thereof) will be published in the Federal Register.\39\
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    \37\ 5 U.S.C. 603. The RFA, 5 U.S.C. 601 et. seq. has been 
amended by the Contract With America Advancement Act of 1996, Public 
Law No. 104-121, 110 Stat. 847 (1996) (CWAAA). Title II of the CWAAA 
is the Small Business Regulatory Enforcement Fairness Act of 1996 
(SBREFA).
    \38\ 5 U.S.C. 603(a).
    \39\ Id.
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I. Need for, and Objectives of, the Proposed Rules

    2. This rulemaking proceeding is initiated to obtain comments 
concerning the Commission's proposed amendment of its Schedule of 
Regulatory Fees. For Fiscal Year 2000, we intend to collect regulatory 
fees in the amount of $185,754,000, the amount that Congress has 
required the Commission to recover. The Commission seeks to collect the 
necessary amount through its proposed revised fees, as contained in the 
attached Schedule of Regulatory Fees, in the most efficient manner 
possible and without undue burden on the public.

II. Legal Basis

    3. This action, including publication of proposed rules, is 
authorized under sections (4)(i) and (j), 9, and 303(r) of the 
Communications Act of 1934, as amended.\40\
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    \40\ 47 U.S.C. 154(i) and (j), 159, and 303(r).
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III. Description and Estimate of the Number of Small Entities to Which 
the Proposed Rules Will Apply

    4. The RFA directs agencies to provide a description of and, where 
feasible, an estimate of the number of small entities that may be 
affected by the proposed rules, if adopted.\41\ The RFA generally 
defines the term ``small entity'' as having the same meaning as the 
terms ``small business,'' ``small organization,'' and ``small 
governmental jurisdiction.'' \42\ In addition, the term ``small 
business'' has the same meaning as the term ``small business concern'' 
under the Small Business Act.\43\ A small business concern is one 
which: (1) Is independently owned and operated; (2) is not dominant in 
its field of operation; and (3) satisfies any additional criteria 
established by the Small Business Administration (SBA).\44\ A small 
organization is generally ``any not-for-profit enterprise which is 
independently owned and operated and is not dominant in its field.'' 
\45\ Nationwide, as of 1992, there were approximately 275,801 small 
organizations.\46\ ``Small governmental jurisdiction'' \47\ generally 
means ``governments of cities, counties, towns, townships, villages, 
school districts, or special districts, with a population of less than 
50,000.'' \48\ As of 1992, there were approximately 85,006 such 
jurisdictions in the United States.\49\ This number includes 38,978 
counties, cities, and towns; of these, 37,566, or 96 percent, have 
populations of fewer than 50,000.\50\ The Census Bureau estimates that 
this ratio is approximately accurate for all governmental entities. 
Thus, of the 85,006 governmental entities, we estimate that 81,600 (96 
percent) are small entities. Below, we further describe and estimate 
the number of small entity licensees and regulatees that may be 
affected by the proposed rules, if adopted.
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    \41\ 5 U.S.C. 603(b)(3).
    \42\ Id. 601(6).
    \43\ 5 U.S.C. 601(3) (incorporating by reference the definition 
of ``small business concern'' in 15 U.S.C. 632). Pursuant to the 
RFA, the statutory definition of a small business applies ``unless 
an agency, after consultation with the Office of Advocacy of the 
Small Business Administration and after opportunity for public 
comment, establishes one or more definitions of such term which are 
appropriate to the activities of the agency and publishes such 
definition(s) in the Federal Register.'' 5 U.S.C. 601(3).
    \44\ Small Business Act, 15 U.S.C. 632 (1996).
    \45\ 5 U.S.C. 601(4).
    \46\ 1992 Economic Census, U.S. Bureau of the Census, Table 6 
(special tabulation of data under contract to Office of Advocacy of 
the U.S. Small Business Administration).
    \47\ 47 CFR 1.1162
    \48\ 5 U.S.C. 601(5).
    \49\ U.S. Dept. of Commerce, Bureau of the Census, ``1992 Census 
of Governments.''
    \50\ Id.
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Cable Services or Systems

    5. The SBA has developed a definition of small entities for cable 
and other pay television services, which includes all such companies 
generating $11 million or less in revenue annually.\51\ This definition 
includes cable systems operators, closed circuit television services, 
direct broadcast satellite services, multipoint distribution systems, 
satellite master antenna systems and subscription television services. 
According to the Census Bureau data from 1992, there were 1,788 total 
cable and other pay television services and 1,423 had less than $11 
million in revenue.\52\
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    \51\ 13 CFR 121.201, SIC code 4841.
    \52\ 1992 Economic Census Industry and Enterprise Receipts Size 
Report, Table 2D, SIC code 4841 (U.S. Bureau of the Census data 
under contract to the Office of Advocacy of the U.S. Small Business 
Administration).
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    6. The Commission has developed its own definition of a small cable 
system operator for purposes of rate regulation. Under the Commission's 
rules, a ``small cable company'' is one serving fewer than 400,000 
subscribers nationwide.\53\ Based on our most recent information, we 
estimate that there were 1,439 cable operators that qualified as small 
cable system operators at the end of 1995.\54\ Since then, some of 
those companies may have grown to serve over 400,000 subscribers, and 
others may have been involved in transactions that caused them to be 
combined with other cable operators. Consequently, we estimate that 
there are fewer than 1,439 small entity cable system operators.
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    \53\ 47 CFR 76.901(e). The Commission developed this definition 
based on its determination that a small cable system operator is one 
with annual revenues of $100 million or less. Implementation of 
Sections of the 1992 Cable Act: Rate Regulation, Sixth Report and 
Order and Eleventh Order on Reconsideration, 10 FCC Rcd 7393 (1995), 
60 FR 10534 (Feb. 27, 1995).
    \54\ Paul Kagan Associates, Inc., Cable TV Investor, Feb. 29, 
1996 (based on figures for Dec. 30, 1995).
---------------------------------------------------------------------------

    7. The Communications Act also contains a definition of a small 
cable system operator, which is ``a cable operator that, directly or 
through an affiliate, serves in the aggregate fewer than 1 percent of 
all subscribers in the United States and is not affiliated with any 
entity or entities whose gross annual revenues in the aggregate exceed 
$250,000,000.'' \55\ The Commission has determined that there are 
66,690,000 subscribers in the United States. Therefore, we found that 
an operator serving fewer than 666,900 subscribers shall be deemed a 
small operator, if its annual revenues, when combined with

[[Page 19586]]

the total annual revenues of all of its affiliates, do not exceed $250 
million in the aggregate.\56\ Based on available data, we find that the 
number of cable operators serving 666,900 subscribers or less totals 
1,450.\57\ We do not request nor do we collect information concerning 
whether cable system operators are affiliated with entities whose gross 
annual revenues exceed $250,000,000,\58\ and thus are unable at this 
time to estimate with greater precision the number of cable system 
operators that would qualify as small cable operators under the 
definition in the Communications Act.
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    \55\ 47 U.S.C. 543(m)(2).
    \56\ Id. 76.1403(b).
    \57\ Paul Kagan Associates, Inc., Cable TV Investor, Feb. 29, 
1996 (based on figures for Dec. 30, 1995).
    \58\ We do receive such information on a case-by-case basis only 
if a cable operator appeals a local franchise authority's finding 
that the operator does not qualify as a small cable operator 
pursuant to Sec. 76.1403(b) of the Commission's rules. See 47 CFR 
76.1403(d).
---------------------------------------------------------------------------

    8. Other Pay Services. Other pay television services are also 
classified under Standard Industrial Classification (SIC) 4841, which 
includes cable systems operators, closed circuit television services, 
direct broadcast satellite services (DBS),\59\ multipoint distribution 
systems (MDS),\60\ satellite master antenna systems (SMATV), and 
subscription television services.
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    \59\ Direct Broadcast Services (DBS) are discussed with the 
international services, infra.
    \60\ Multipoint Distribution Services (MDS) are discussed with 
the mass media services, infra.
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Common Carrier Services and Related Entities

    9. The most reliable source of information regarding the total 
numbers of certain common carrier and related providers nationwide, as 
well as the number of commercial wireless entities, appears to be data 
the Commission publishes in its Trends in Telephone Service report.\61\ 
However, in a recent news release, the Commission indicated that there 
are 4,144 interstate carriers.\62\ These carriers include, inter alia, 
local exchange carriers, wireline carriers and service providers, 
interexchange carriers, competitive access providers, operator service 
providers, pay telephone operators, providers of telephone service, 
providers of telephone exchange service, and resellers.
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    \61\ FCC, Common Carrier Bureau, Industry Analysis Division, 
Trends in Telephone Service, Table 19.3 (March 2000).
    \62\ FCC, Common Carrier Bureau, Industry Analysis Division, 
Trends in Telephone Service, Table 19.3 (March 2000)
---------------------------------------------------------------------------

    10. The SBA has defined establishments engaged in providing 
``Radiotelephone Communications'' and ``Telephone Communications, 
Except Radiotelephone'' to be small businesses when they have no more 
than 1,500 employees.\63\ Below, we discuss the total estimated number 
of telephone companies falling within the two categories and the number 
of small businesses in each, and we then attempt to refine further 
those estimates to correspond with the categories of telephone 
companies that are commonly used under our rules.
---------------------------------------------------------------------------

    \63\ 13 CFR 121.201, Standard Industrial Classification (SIC) 
codes 4812 and 4813. See also Executive Office of the President, 
Office of Management and Budget, Standard Industrial Classification 
Manual (1987).
---------------------------------------------------------------------------

    11. We have included small incumbent LECs in this present RFA 
analysis. As noted above, a ``small business'' under the RFA is one 
that, inter alia, meets the pertinent small business size standard 
(e.g., a telephone communications business having 1,500 or fewer 
employees), and ``is not dominant in its field of operation.'' \64\ The 
SBA's Office of Advocacy contends that, for RFA purposes, small 
incumbent LECs are not dominant in their field of operation because any 
such dominance is not ``national'' in scope.\65\ We have therefore 
included small incumbent LECs in this RFA analysis, although we 
emphasize that this RFA action has no effect on FCC analyses and 
determinations in other, non-RFA contexts.
---------------------------------------------------------------------------

    \64\ 5 U.S.C. 601(3).
    \65\ Letter from Jere W. Glover, Chief Counsel for Advocacy, 
SBA, to William E. Kennard, Chairman, FCC (May 27, 1999). The Small 
Business Act contains a definition of ``small business concern,'' 
which the RFA incorporates into its own definition of ``small 
business.'' See 15 U.S.C. 632(a) (Small Business Act); 5 U.S.C. 
601(3) (RFA). SBA regulations interpret ``small business concern'' 
to include the concept of dominance on a national basis. 13 CFR 
121.102(b). Since 1996, out of an abundance of caution, the 
Commission has included small incumbent LECs in its regulatory 
flexibility analyses. See, e.g., Implementation of the Local 
Competition Provisions of the Telecommunications Act of 1996, CC 
Docket, 96-98, First Report and Order, 11 FCC Rcd 15499, 16144-45 
(1996), 61 FR 45476 (Aug. 29, 1996).
---------------------------------------------------------------------------

    12. Total Number of Telephone Companies Affected. The U.S. Bureau 
of the Census (``Census Bureau'') reports that, at the end of 1992, 
there were 3,497 firms engaged in providing telephone services, as 
defined therein, for at least one year.\66\ This number contains a 
variety of different categories of carriers, including local exchange 
carriers, interexchange carriers, competitive access providers, 
cellular carriers, mobile service carriers, operator service providers, 
pay telephone operators, covered specialized mobile radio providers, 
and resellers. It seems certain that some of these 3,497 telephone 
service firms may not qualify as small entities or small ILECs because 
they are not ``independently owned and operated.'' \67\ For example, a 
PCS provider that is affiliated with an interexchange carrier having 
more than 1,500 employees would not meet the definition of a small 
business. It is reasonable to conclude that fewer than 3,497 telephone 
service firms are small entity telephone service firms or small ILECs 
that may be affected by the proposed rules, if adopted.
---------------------------------------------------------------------------

    \66\ U.S. Department of Commerce, Bureau of the Census, 1992 
Census of Transportation, Communications, and Utilities: 
Establishment and Firm Size, at Firm Size 1-123 (1995) (1992 
Census).
    \67\ See generally 15 U.S.C. 632(a)(1).
---------------------------------------------------------------------------

    13. Wireline Carriers and Service Providers. The SBA has developed 
a definition of small entities for telephone communications companies 
except radiotelephone (wireless) companies. The Census Bureau reports 
that there were 2,321 such telephone companies in operation for at 
least one year at the end of 1992.\68\ According to the SBA's 
definition, a small business telephone company other than a 
radiotelephone company is one employing no more than 1,500 persons.\69\ 
All but 26 of the 2,321 non-radiotelephone companies listed by the 
Census Bureau were reported to have fewer than 1,000 employees. Thus, 
even if all 26 of those companies had more than 1,500 employees, there 
would still be 2,295 non-radiotelephone companies that might qualify as 
small entities or small ILECs. We do not have data specifying the 
number of these carriers that are not independently owned and operated, 
and thus are unable at this time to estimate with greater precision the 
number of wireline carriers and service providers that would qualify as 
small business concerns under the SBA's definition. Consequently, we 
estimate that fewer than 2,295 small telephone communications companies 
other than radiotelephone companies are small entities or small ILECs 
that may be affected by the proposed rules, if adopted.
---------------------------------------------------------------------------

    \68\ 1992 Census, supra, at Firm Size 1-123.
    \69\ 13 CFR 121.201, SIC code 4813.
---------------------------------------------------------------------------

    14. Local Exchange Carriers. Neither the Commission nor the SBA has 
developed a definition for small providers of local exchange services 
(LECs). The closest applicable definition under the SBA rules is for 
telephone communications companies other than radiotelephone (wireless) 
companies.\70\ According to the most recent Telecommunications Industry 
Revenue data, 1,348 incumbent carriers reported that they were engaged 
in the provision

[[Page 19587]]

of local exchange services.\71\ We do not have data specifying the 
number of these carriers that are either dominant in their field of 
operations, are not independently owned and operated, or have more than 
1,500 employees, and thus are unable at this time to estimate with 
greater precision the number of LECs that would qualify as small 
business concerns under the SBA's definition. Consequently, we estimate 
that fewer than 1,348 providers of local exchange service are small 
entities or small ILECs that may be affected by the proposed rules, if 
adopted.
---------------------------------------------------------------------------

    \70\ Id.
    \71\ FCC, Common Carrier Bureau, Industry Analysis Division, 
Trends in Telephone Service, Table 19.3 (March 2000).
---------------------------------------------------------------------------

    15. Interexchange Carriers. Neither the Commission nor the SBA has 
developed a definition of small entities specifically applicable to 
providers of interexchange services (IXCs). The closest applicable 
definition under the SBA rules is for telephone communications 
companies other than radiotelephone (wireless) companies.\72\ According 
to the most recent Trends in Telephone Service data, 171 carriers 
reported that they were engaged in the provision of interexchange 
services.\73\ We do not have data specifying the number of these 
carriers that are not independently owned and operated or have more 
than 1,500 employees, and thus are unable at this time to estimate with 
greater precision the number of IXCs that would qualify as small 
business concerns under the SBA's definition. Consequently, we estimate 
that there are fewer than 171 small entity IXCs that may be affected by 
the proposed rules, if adopted.
---------------------------------------------------------------------------

    \72\ 13 CFR 121.201, SIC code 4813.
    \73\ FCC, Common Carrier Bureau, Industry Analysis Division, 
Trends in Telephone Service, Table 19.3 (March 2000).
---------------------------------------------------------------------------

    16. Competitive Access Providers. Neither the Commission nor the 
SBA has developed a definition of small entities specifically 
applicable to competitive access services providers (CAPs). The closest 
applicable definition under the SBA rules is for telephone 
communications companies other than except radiotelephone (wireless) 
companies.\74\ According to the most recent Trends in Telephone Service 
data, 212 CAP/CLECs carriers and 10 other LECs reported that they were 
engaged in the provision of competitive local exchange services.\75\ We 
do not have data specifying the number of these carriers that are not 
independently owned and operated, or have more than 1,500 employees, 
and thus are unable at this time to estimate with greater precision the 
number of CAPs that would qualify as small business concerns under the 
SBA's definition. Consequently, we estimate that there are fewer than 
212 small entity CAPs and 10 other LECs that may be affected by the 
proposed rules, if adopted.
---------------------------------------------------------------------------

    \74\ 13 CFR 121.201, SIC code 4813.
    \75\ FCC, Common Carrier Bureau, Industry Analysis Division, 
Trends in Telephone Service, Table 19.3 (March 2000).
---------------------------------------------------------------------------

    17. Operator Service Providers. Neither the Commission nor the SBA 
has developed a definition of small entities specifically applicable to 
providers of operator services. The closest applicable definition under 
the SBA rules is for telephone communications companies other than 
radiotelephone (wireless) companies.\76\ According to the most recent 
Trends in Telephone Service data, 24 carriers reported that they were 
engaged in the provision of operator services.\77\ We do not have data 
specifying the number of these carriers that are not independently 
owned and operated or have more than 1,500 employees, and thus are 
unable at this time to estimate with greater precision the number of 
operator service providers that would qualify as small business 
concerns under the SBA's definition. Consequently, we estimate that 
there are fewer than 24 small entity operator service providers that 
may be affected by the proposed rules, if adopted.
---------------------------------------------------------------------------

    \76\ 13 CFR 121.201, SIC code 4813.
    \77\ FCC, Common Carrier Bureau, Industry Analysis Division, 
Trends in Telephone Service, Table 19.3 (March 2000).
---------------------------------------------------------------------------

    18. Pay Telephone Operators. Neither the Commission nor the SBA has 
developed a definition of small entities specifically applicable to pay 
telephone operators. The closest applicable definition under SBA rules 
is for telephone communications companies other than radiotelephone 
(wireless) companies.\78\ According to the most recent Trends in 
Telephone Service data, 615 carriers reported that they were engaged in 
the provision of pay telephone services.\79\ We do not have data 
specifying the number of these carriers that are not independently 
owned and operated or have more than 1,500 employees, and thus are 
unable at this time to estimate with greater precision the number of 
pay telephone operators that would qualify as small business concerns 
under the SBA's definition. Consequently, we estimate that there are 
fewer than 615 small entity pay telephone operators that may be 
affected by the proposed rules, if adopted.
---------------------------------------------------------------------------

    \78\ 13 CFR 121.201, SIC code 4813.
    \79\ FCC, Common Carrier Bureau, Industry Analysis Division, 
Trends in Telephone Service, Table 19.3 (March 2000).
---------------------------------------------------------------------------

    19. Resellers (including debit card providers). Neither the 
Commission nor the SBA has developed a definition of small entities 
specifically applicable to resellers. The closest applicable SBA 
definition for a reseller is a telephone communications company other 
than radiotelephone (wireless) companies.\80\ According to the most 
recent Trends in Telephone Service data, 388 toll and 54 local entities 
reported that they were engaged in the resale of telephone service.\81\ 
We do not have data specifying the number of these carriers that are 
not independently owned and operated or have more than 1,500 employees, 
and thus are unable at this time to estimate with greater precision the 
number of resellers that would qualify as small business concerns under 
the SBA's definition. Consequently, we estimate that there are fewer 
than 388 small toll entity resellers and 54 small local entity 
resellers that may be affected by the proposed rules, if adopted.
---------------------------------------------------------------------------

    \80\ 13 CFR 121.201, SIC code 4813.
    \81\ FCC, Common Carrier Bureau, Industry Analysis Division, 
Trends in Telephone Service, Table 19.3 (March 2000).
---------------------------------------------------------------------------

    20. Toll-Free 800 and 800-Like Service Subscribers.\82\ Neither the 
Commission nor the SBA has developed a definition of small entities 
specifically applicable to 800 and 800-like service (``toll free'') 
subscribers. The most reliable source of information regarding the 
number of these service subscribers appears to be data the Commission 
collects on the 800, 888, and 877 numbers in use.\83\ According to our 
most recent data, at the end of January 1999, the number of 800 numbers 
assigned was 7,692,955; the number of 888 numbers that had been 
assigned was 7,706,393; and the number of 877 numbers assigned was 
1,946,538. We do not have data specifying the number of these 
subscribers that are not independently owned and operated or have more 
than 1,500 employees, and thus are unable at this time to estimate with 
greater precision the number of toll free subscribers that would 
qualify as small business concerns under the SBA's definition. 
Consequently, we estimate that there are fewer than 7,692,955 small 
entity 800 subscribers, fewer than 7,706,393 small entity 888 
subscribers, and fewer than 1,946,538 small entity

[[Page 19588]]

877 subscribers may be affected by the proposed rules, if adopted.
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    \82\ We include all toll-free number subscribers in this 
category, including 888 numbers.
    \83\ FCC, CCB Industry Analysis Division, FCC Releases, Study on 
Telephone Trends, Tbls. 21.2, 21.3 and 21.4 (February 19, 1999).
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INTERNATIONAL SERVICES

    21. The Commission has not developed a definition of small entities 
applicable to licensees in the international services. Therefore, the 
applicable definition of small entity is generally the definition under 
the SBA rules applicable to Communications Services, Not Elsewhere 
Classified (NEC).\84\ This definition provides that a small entity is 
expressed as one with $11.0 million or less in annual receipts.\85\ 
According to the Census Bureau, there were a total of 848 
communications services providers, NEC, in operation in 1992, and a 
total of 775 had annual receipts of less than $9.999 million.\86\ The 
Census report does not provide more precise data.
---------------------------------------------------------------------------

    \84\ An exception is the Direct Broadcast Satellite (DBS) 
Service, infra.
    \85\ 13 CFR 120.121, SIC code 4899.
    \86\ 1992 Economic Census Industry and Enterprise Receipts Size 
Report, Table 2D, SIC code 4899 (U.S. Bureau of the Census data 
under contract to the Office of Advocacy of the U.S. Small Business 
Administration).
---------------------------------------------------------------------------

    22. International Broadcast Stations. Commission records show that 
there are 20 international broadcast station licensees. We do not 
request nor collect annual revenue information, and thus are unable to 
estimate the number of international broadcast licensees that would 
constitute a small business under the SBA definition. However, the 
Commission estimates that only six international broadcast stations are 
subject to regulatory fee payments.
    23. International Public Fixed Radio (Public and Control Stations). 
There are 3 licensees in this service subject to payment of regulatory 
fees. We do not request nor collect annual revenue information, and 
thus are unable to estimate the number of international broadcast 
licensees that would constitute a small business under the SBA 
definition.
    24. Fixed Satellite Transmit/Receive Earth Stations. There are 
approximately 2,679 earth station authorizations, a portion of which 
are Fixed Satellite Transmit/Receive Earth Stations. We do not request 
nor collect annual revenue information, and thus are unable to estimate 
the number of the earth stations that would constitute a small business 
under the SBA definition.
    25. Fixed Satellite Small Transmit/Receive Earth Stations. There 
are approximately 2,679 earth station authorizations, a portion of 
which are Fixed Satellite Small Transmit/Receive Earth Stations. We do 
not request nor collect annual revenue information, and thus are unable 
to estimate the number of fixed satellite transmit/receive earth 
stations that would constitute a small business under the SBA 
definition.
    26. Fixed Satellite Very Small Aperture Terminal (VSAT) Systems. 
These stations operate on a primary basis, and frequency coordination 
with terrestrial microwave systems is not required. Thus, a single 
``blanket'' application may be filed for a specified number of small 
antennas and one or more hub stations. The Commission has processed 377 
applications. We do not request nor collect annual revenue information, 
and thus are unable to estimate the number of VSAT systems that would 
constitute a small business under the SBA definition.
    27. Mobile Satellite Earth Stations. There are 11 licensees. We do 
not request nor collect annual revenue information, and thus are unable 
to estimate the number of mobile satellite earth stations that would 
constitute a small business under the SBA definition.
    28. Radio Determination Satellite Earth Stations. There are four 
licensees. We do not request nor collect annual revenue information, 
and thus are unable to estimate the number of radio determination 
satellite earth stations that would constitute a small business under 
the SBA definition.
    29. Space Stations (Geostationary). Commission records reveal that 
there are 64 Geostationary Space Station licensees. We do not request 
nor collect annual revenue information, and thus are unable to estimate 
the number of geostationary space stations that would constitute a 
small business under the SBA definition.
    30. Space Stations (Non-Geostationary). There are 12 Non-
Geostationary Space Station licensees, of which only three systems are 
operational. We do not request nor collect annual revenue information, 
and thus are unable to estimate the number of non-geostationary space 
stations that would constitute a small business under the SBA 
definition.
    31. Direct Broadcast Satellites. Because DBS provides subscription 
services, DBS falls within the SBA-recognized definition of ``Cable and 
Other Pay Television Services.''\87\ This definition provides that a 
small entity is one with $11.0 million or less in annual receipts.\88\ 
As of December 1996, there were eight DBS licensees. However, the 
Commission does not collect annual revenue data for DBS and, therefore, 
is unable to ascertain the number of small DBS licensees that would be 
impacted by these proposed rules. Although DBS service requires a great 
investment of capital for operation, there are several new entrants in 
this field that may not yet have generated $11 million in annual 
receipts, and therefore may be categorized as small businesses, if 
independently owned and operated.
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    \87\ 13 CFR 120.121, SIC code 4841.
    \88\ 13 CFR 121.201, SIC code 4841.
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Mass Media Services

    32. Commercial Radio and Television Services. The proposed rules 
and policies will apply to television broadcasting licensees and radio 
broadcasting licensees.\89\ The SBA defines a television broadcasting 
station that has $10.5 million or less in annual receipts as a small 
business.\90\ Television broadcasting stations consist of 
establishments primarily engaged in broadcasting visual programs by 
television to the public, except cable and other pay television 
services.\91\ Included in this industry are commercial, religious, 
educational, and other television stations.\92\ Also included are 
establishments primarily engaged in television broadcasting and which 
produce taped television program materials.\93\ Separate establishments 
primarily engaged in producing taped television program materials are

[[Page 19589]]

classified under another SIC number.\94\ There were 1,509 television 
stations operating in the nation in 1992.\95\ That number has remained 
fairly constant as indicated by the approximately 1,616 operating 
television broadcasting stations in the nation as of September 30, 
1999. \96\ For 1992, \97\ the number of television stations that 
produced less than $10.0 million in revenue was 1,155 establishments. 
\98\ Only commercial stations are subject to regulatory fees.
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    \89\ While we tentatively believe that the SBA's definition of 
``small business'' greatly overstates the number of radio and 
television broadcast stations that are small businesses and is not 
suitable for purposes of determining the impact of the proposals on 
small television and radio stations, for purposes of this Notice we 
utilize the SBA's definition in determining the number of small 
businesses to which the proposed rules would apply. We reserve the 
right to adopt, in the future, a more suitable definition of ``small 
business'' as applied to radio and television broadcast stations or 
other entities subject to the proposed rules in this Notice, and to 
consider further the issue of the number of small entities that are 
radio and television broadcasters or other small media entities. See 
Report and Order in MM Docket No. 93-48 (Children's Television 
Programming), 11 FCC Rcd 10660, 10737-38 (1996), 61 FR 43981 (Aug. 
27, 1996), citing 5 U.S.C. 601(3).
    \90\ 13 CFR 121.201, SIC code 4833.
    \91\ Economics and Statistics Administration, Bureau of Census, 
U.S. Department of Commerce, 1992 Census of Transportation, 
Communications and Utilities, Establishment and Firm Size, Series 
UC92-S-1, Appendix A-9 (1995) (1992 Census, Series UC92-S-1).
    \92\ Id.; see Executive Office of the President, Office of 
Management and Budget, Standard Industrial Classification Manual 
(1987), at 283, which describes ``Television Broadcasting Stations'' 
(SIC code 4833) as:
    Establishments primarily engaged in broadcasting visual programs 
by television to the public, except cable and other pay television 
services. Included in this industry are commercial, religious, 
educational and other television stations. Also included here are 
establishments primarily engaged in television broadcasting and 
which produce taped television program materials.
    \93\ 1992 Census, Series UC92-S-1, at Appendix A-9.
    \94\ Id., SIC code 7812 (Motion Picture and Video Tape 
Production); SIC code 7922 (Theatrical Producers and Miscellaneous 
Theatrical Services) (producers of live radio and television 
programs).
    \95\ FCC News Release No. 31327 (Jan. 13, 1993); 1992 Census, 
Series UC92-S-1, at Appendix A-9.
    \96\ FCC News Release, ``Broadcast Station Totals as of 
September 30, 1999.''
    \97\ A census to determine the estimated number of 
Communications establishments is performed every five years, in 
years ending with a ``2'' or ``7.'' See 1992 Census, Series UC92-S-
1, at III.
    \98\ The amount of $10 million was used to estimate the number 
of small business establishments because the relevant Census 
categories stopped at $9,999,999 and began at $10,000,000. No 
category for $10.5 million existed. Thus, the number is as accurate 
as it is possible to calculate with the available information.
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    33. Additionally, the Small Business Administration defines a radio 
broadcasting station that has $5 million or less in annual receipts as 
a small business.\99\ A radio broadcasting station is an establishment 
primarily engaged in broadcasting aural programs by radio to the 
public.\100\ Included in this industry are commercial, religious, 
educational, and other radio stations.\101\ Radio broadcasting 
stations, which primarily are engaged in, radio broadcasting and which 
produce radio program materials are similarly included.\102\ However, 
radio stations which are separate establishments and are primarily 
engaged in producing radio program material are classified under 
another SIC number.\103\ The 1992 Census indicates that 96 percent 
(5,861 of 6,127) radio station establishments produced less than $5 
million in revenue in 1992.\104\ Official Commission records indicate 
that 11,334 individual radio stations were operating in 1992.\105\ As 
of September 30, 1999, Commission records indicate that 12,615 radio 
stations were operating, of which 7,832 were FM stations.\106\ Only 
commercial stations are subject to regulatory fees.
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    \99\ 13 CFR 121.201, SIC code 4832.
    \100\ 1992 Census, Series UC92-S-1, at Appendix A-9.
    \101\ Id.
    \102\ Id.
    \103\ Id.
    \104\ The Census Bureau counts radio stations located at the 
same facility as one establishment. Therefore, each co-located AM/FM 
combination counts as one establishment.
    \105\ FCC News Release, No. 31327 (Jan. 13, 1993).
    \106\ FCC News Release, ``Broadcast Station Totals as of 
September 30, 1999.''
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    34. Thus, the rules may affect approximately 1,616 full power 
television stations, approximately 1,200 of which are considered small 
businesses.\107\ Additionally, the proposed rules will affect some 
12,615 full power radio stations, approximately 11,670 of which are 
small businesses.\108\ These estimates may overstate the number of 
small entities because the revenue figures on which they are based do 
not include or aggregate revenues from non-television or non-radio 
affiliated companies. There are also 2,194 low power television 
stations (LPTV).\109\ Given the nature of this service, we will presume 
that all LPTV licensees qualify as small entities under the SBA 
definition.
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    \107\ We use the 77 percent figure of TV stations operating at 
less than $10 million for 1992 and apply it to the 1997 total of 
1558 TV stations to arrive at 1,200 stations categorized as small 
businesses.
    \108\ We use the 96% figure of radio station establishments with 
less than $5 million revenue from the Census data and apply it to 
the 12,088 individual station count to arrive at 11,605 individual 
stations as small businesses.
    \109\ FCC News Release, No. 7033 (Mar. 6, 1997).
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Alternative Classification of Small Stations

    35. An alternative way to classify small radio and television 
stations is by number of employees. The Commission currently applies a 
standard based on the number of employees in administering its Equal 
Employment Opportunity Rule (EEO) for broadcasting.\110\ Thus, radio or 
television stations with fewer than five full-time employees are 
exempted from certain EEO reporting and record keeping 
requirements.\111\ We estimate that the total number of broadcast 
stations with 4 or fewer employees is approximately 5,186, of which 340 
are television stations.\112\
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    \110\ The Commission's definition of a small broadcast station 
for purposes of applying its EEO rules was adopted prior to the 
requirement of approval by the SBA pursuant to section 3(a) of the 
Small Business Act, 15 U.S.C. 632(a), as amended by section 222 of 
the Small Business Credit and Business Opportunity Enhancement Act 
of 1992, Public Law 102-366, 222(b)(1), 106 Stat. 999 (1992), as 
further amended by the Small Business Administration Reauthorization 
and Amendments Act of 1994, Public Law 103-403, 301, 108 Stat. 4187 
(1994). However, this definition was adopted after public notice and 
the opportunity for comment. See Report and Order in Docket No. 
18244, 23 FCC 2d 430 (1970), 35 FR 8925 (Jun. 6, 1970).
    \111\ See, e.g., 47 CFR 73.3612 (Requirement to file annual 
employment reports on Form 395 applies to licensees with five or 
more full-time employees). See also, Review of the Commission's 
Broadcast and Cable Equal Employment Opportunity Rules and Policies 
and Termination of the EEO Streamlining Proceeding, FCC 00-20, 
released February 2, 2000 (``Review of EEO Rules'').
    \112\ See Review of EEO Rules, Appendix B, Sec. C [from 
compilation of 1997 Broadcast Station Annual Employment Reports (FCC 
Form 395-B), Equal Employment Opportunity Staff, Mass Media Bureau, 
FCC].
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Auxiliary, Special Broadcast and Other Program Distribution Services

    36. This service involves a variety of transmitters, generally used 
to relay broadcast programming to the public (through translator and 
booster stations) or within the program distribution chain (from a 
remote news gathering unit back to the station). The Commission has not 
developed a definition of small entities applicable to broadcast 
auxiliary licensees. Therefore, the applicable definitions of small 
entities are those, noted previously, under the SBA rules applicable to 
radio broadcasting stations and television broadcasting stations.\113\
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    \113\ 13 CFR 121.201, SIC code 4832.
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    37. There are currently 3,237 FM translators and boosters, and 
2,964 TV translators.\114\ The FCC does not collect financial 
information on any broadcast facility, and the Department of Commerce 
does not collect financial information on these auxiliary broadcast 
facilities. We believe, however, that most, if not all, of these 
auxiliary facilities could be classified as small businesses by 
themselves. We also recognize that most commercial translators and 
boosters are owned by a parent station which, in some cases, would be 
covered by the revenue definition of small business entity discussed 
above. These stations would likely have annual revenues that exceed the 
SBA maximum to be designated as a small business (either $5 million for 
a radio station or $10.5 million for a TV station). Furthermore, they 
do not meet the Small Business Act's definition of a ``small business 
concern'' because they are not independently owned and operated.\115\
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    \114\ FCC News Release, Broadcast Station Totals as of September 
30, 1999, No. 71831 (Jan. 21, 1997).
    \115\ 15 U.S.C. 632.
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    38. Multipoint Distribution Service (MDS). This service involves a 
variety of transmitters, which are used to relay programming to the 
home or office, similar to that provided by cable television 
systems.\116\ In connection with the 1996 MDS auction, the Commission 
defined small businesses as entities that had annual average gross 
revenues for the three preceding years

[[Page 19590]]

not in excess of $40 million.\117\ This definition of a small entity in 
the context of MDS auctions has been approved by the SBA.\118\ These 
stations were licensed prior to implementation of section 309(j) of the 
Communications Act of 1934, as amended.\119\ Licenses for new MDS 
facilities are now awarded to auction winners in Basic Trading Areas 
(BTAs) and BTA-like areas.\120\ The MDS auctions resulted in 67 
successful bidders obtaining licensing opportunities for 493 BTAs. Of 
the 67 auction winners, 61 meet the definition of a small business. 
There are 2,050 MDS stations currently licensed. Thus, we conclude that 
there are 1,634 MDS providers that are small businesses as deemed by 
the SBA and the Commission's auction rules. It is estimated, however, 
that only 1,650 MDS licensees are subject to regulatory fees, and the 
number which are small businesses is unknown.
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    \116\ For purposes of this item, MDS includes both the single 
channel Multipoint Distribution Service (MDS) and the Multichannel 
Multipoint Distribution Service (MMDS).
    \117\ 47 CFR 1.2110 (a)(1).
    \118\ Amendment of Parts 21 and 74 of the Commission's Rules 
with Regard to Filing Procedures in the Multipoint Distribution 
Service and in the Instructional Television Fixed Service and 
Implementation of Section 309(j) of the Communications Act--
Competitive Bidding, 10 FCC Rcd 9589 (1995), 60 FR 36524 (Jul. 17, 
1995).
    \119\ 47 U.S.C. 309(j).
    \120\ Id. A Basic Trading Area (BTA) is the geographic area by 
which the Multipoint Distribution Service is licensed. See Rand 
McNally 1992 Commercial Atlas and Marketing Guide, 123rd Edition, 
pp. 36-39.
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Wireless and Commercial Mobile Services

    39. Cellular Licensees. Neither the Commission nor the SBA has 
developed a definition of small entities applicable to cellular 
licensees. Therefore, the applicable definition of small entity is the 
definition under the SBA rules applicable to radiotelephone (wireless) 
companies. This provides that a small entity is a radiotelephone 
company employing no more than 1,500 persons.\121\ According to the 
Bureau of the Census, only twelve radiotelephone firms from a total of 
1,178 such firms which operated during 1992 had 1,000 or more 
employees.\122\ Therefore, even if all twelve of these firms were 
cellular telephone companies, nearly all cellular carriers were small 
businesses under the SBA's definition. In addition, we note that there 
are 1,758 cellular licenses; however, a cellular licensee may own 
several licenses. In addition, according to the most recent 
Telecommunications Industry Revenue data, 808 carriers reported that 
they were engaged in the provision of either cellular service or 
Personal Communications Service (PCS) services, which are placed 
together in the data.\123\ We do not have data specifying the number of 
these carriers that are not independently owned and operated or have 
more than 1,500 employees, and thus are unable at this time to estimate 
with greater precision the number of cellular service carriers that 
would qualify as small business concerns under the SBA's definition. 
Consequently, we estimate that there are fewer than 808 small cellular 
service carriers that may be affected by the proposed rules, if 
adopted.
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    \121\ 13 CFR 121.201, SIC code 4812.
    \122\ 1992 Census, Series UC92-S-1, at Table 5, SIC code 4812.
    \123\ Trends in Telephone Service, Table 19.3 (March 2000).
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    40. 220 MHz Radio Service--Phase I Licensees. The 220 MHz service 
has both Phase I and Phase II licenses. Phase I licensing was conducted 
by lotteries in 1992 and 1993. There are approximately 1,515 such non-
nationwide licensees and four nationwide licensees currently authorized 
to operate in the 220 MHz band. The Commission has not developed a 
definition of small entities specifically applicable to such incumbent 
220 MHz Phase I licensees. To estimate the number of such licensees 
that are small businesses, we apply the definition under the SBA rules 
applicable to Radiotelephone Communications companies. This definition 
provides that a small entity is a radiotelephone company employing no 
more than 1,500 persons.\124\ According to the Bureau of the Census, 
only 12 radiotelephone firms out of a total of 1,178 such firms which 
operated during 1992 had 1,000 or more employees.\125\ Therefore, if 
this general ratio continues in 1999 in the context of Phase I 220 MHz 
licensees, we estimate that nearly all such licensees are small 
businesses under the SBA's definition.
---------------------------------------------------------------------------

    \124\ 13 CFR 121.201, Standard Industrial Classification (SIC) 
code 4812.
    \125\ U.S. Bureau of the Census, U.S. Department of Commerce, 
1992 Census of Transportation, Communications, and Utilities, UC92-
S-1, Subject Series, Establishment and Firm Size, Table 5, 
Employment Size of Firms; 1992, SIC code 4812 (issued May 1995).
---------------------------------------------------------------------------

    41. 220 MHz Radio Service--Phase II Licensees. The Phase II 220 MHz 
service is a new service, and is subject to spectrum auctions. In the 
220 MHz Third Report and Order, we adopted criteria for defining small 
businesses and very small businesses for purposes of determining their 
eligibility for special provisions such as bidding credits and 
installment payments.\126\ We have defined a small business as an 
entity that, together with its affiliates and controlling principals, 
has average gross revenues not exceeding $15 million for the preceding 
three years. Additionally, a very small business is defined as an 
entity that, together with its affiliates and controlling principals, 
has average gross revenues that are not more than $3 million for the 
preceding three years.\127\ The SBA has approved these 
definitions.\128\ An auction of Phase II licenses commenced on 
September 15, 1998, and closed on October 22, 1998.\129\ Nine hundred 
and eight (908) licenses were auctioned in 3 different-sized geographic 
areas: three nationwide licenses, 30 Regional Economic Area Group 
Licenses, and 875 Economic Area (EA) Licenses. Of the 908 licenses 
auctioned, 693 were sold. Companies claiming small business status won: 
one of the Nationwide licenses, 67% of the Regional licenses, and 54% 
of the EA licenses. As of January 22, 1999, the Commission announced 
that it was prepared to grant 654 of the Phase II licenses won at 
auction. \130\
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    \126\ 220 MHz Third Report and Order, 12 FCC Rcd 10943, 11068-
70, at paras. 291-295 (1997).
    \127\ 220 MHz Third Report and Order, 12 FCC Rcd at 11068-69, 
para. 291.
    \128\ See Letter from A. Alvarez, Administrator, SBA, to D. 
Phythyon, Chief, Wireless Telecommunications Bureau, FCC (Jan. 6, 
1998).
    \129\ See generally Public Notice, ``220 MHz Service Auction 
Closes,'' Report No. WT 98-36 (Wireless Telecom. Bur. Oct. 23, 
1998).
    \130\ Public Notice, ``FCC Announces It is Prepared to Grant 654 
Phase II 220 MHz Licenses After Final Payment is Made,'' Report No. 
AUC-18-H, DA No. 99-229 (Wireless Telecom. Bur. Jan. 22, 1999).
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    42. Private and Common Carrier Paging. The Commission has proposed 
a two-tier definition of small businesses in the context of auctioning 
licenses in the Common Carrier Paging and exclusive Private Carrier 
Paging services. Under the proposal, a small business will be defined 
as either (1) an entity that, together with its affiliates and 
controlling principals, has average gross revenues for the three 
preceding years of not more than $3 million, or (2) an entity that, 
together with affiliates and controlling principals, has average gross 
revenues for the three preceding calendar years of not more than $15 
million. Because the SBA has not yet approved this definition for 
paging services, we will utilize the SBA's definition applicable to 
radiotelephone companies, i.e., an entity employing no more than 1,500 
persons.\131\ At present, there are approximately 24,000 Private Paging 
licenses and 74,000 Common Carrier Paging licenses. According to the 
most recent Telecommunications Industry Revenue data, 172 carriers 
reported that they were engaged in the provision of either paging or 
``other mobile'' services, which are placed together in the data.\132\ 
We do not have

[[Page 19591]]

data specifying the number of these carriers that are not independently 
owned and operated or have more than 1,500 employees, and thus are 
unable at this time to estimate with greater precision the number of 
paging carriers that would qualify as small business concerns under the 
SBA's definition. Consequently, we estimate that there are fewer than 
172 small paging carriers that may be affected by the proposed rules, 
if adopted. We estimate that the majority of private and common carrier 
paging providers would qualify as small entities under the SBA 
definition.
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    \131\ 13 CFR 121.201, SIC code 4812.
    \132\ Trends in Telephone Service, Table 19.3 (February 19, 
1999).
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    43. Mobile Service Carriers. Neither the Commission nor the SBA has 
developed a definition of small entities specifically applicable to 
mobile service carriers, such as paging companies. As noted above in 
the section concerning paging service carriers, the closest applicable 
definition under the SBA rules is that for radiotelephone (wireless) 
companies,\133\ and the most recent Telecommunications Industry Revenue 
data shows that 172 carriers reported that they were engaged in the 
provision of either paging or ``other mobile'' services.\134\ 
Consequently, we estimate that there are fewer than 172 small mobile 
service carriers that may be affected by the proposed rules, if 
adopted.
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    \133\ 13 CFR 121.201, SIC code 4812.
    \134\ Trends in Telephone Service, Table 19.3 (February 19, 
1999).
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    44. Broadband Personal Communications Service (PCS). The broadband 
PCS spectrum is divided into six frequency blocks designated A through 
F, and the Commission has held auctions for each block. The Commission 
defined ``small entity'' for Blocks C and F as an entity that has 
average gross revenues of less than $40 million in the three previous 
calendar years. \135\ For Block F, an additional classification for 
``very small business'' was added and is defined as an entity that, 
together with their affiliates, has average gross revenues of not more 
than $15 million for the preceding three calendar years. \136\ These 
regulations defining ``small entity'' in the context of broadband PCS 
auctions have been approved by the SBA. \137\ No small businesses 
within the SBA-approved definition bid successfully for licenses in 
Blocks A and B. There were 90 winning bidders that qualified as small 
entities in the Block C auctions. A total of 93 small and very small 
business bidders won approximately 40% of the 1,479 licenses for Blocks 
D, E, and F. \138\ Based on this information, we conclude that the 
number of small broadband PCS licensees will include the 90 winning C 
Block bidders and the 93 qualifying bidders in the D, E, and F blocks, 
for a total of 183 small entity PCS providers as defined by the SBA and 
the Commission's auction rules.
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    \135\ See Amendment of Parts 20 and 24 of the Commission's 
Rules--Broadband PCS Competitive Bidding and the Commercial Mobile 
Radio Service Spectrum Cap, Report and Order, FCC 96-278, WT Docket 
No. 96-59, paras. 57-60 (released Jun. 24, 1996), 61 FR 33859 (Jul. 
1, 1996); see also 47 CFR 24.720(b).
    \136\ See Amendment of Parts 20 and 24 of the Commission's 
Rules--Broadband PCS Competitive Bidding and the Commercial Mobile 
Radio Service Spectrum Cap, Report and Order, FCC 96-278, WT Docket 
No. 96-59, para. 60 (1996), 61 FR 33859 (Jul. 1, 1996).
    \137\ See, e.g., Implementation of Section 309(j) of the 
Communications Act--Competitive Bidding, PP Docket No. 93-253, Fifth 
Report and Order, 9 FCC Rcd 5532, 5581-84 (1994).
    \138\ FCC News, Broadband PCS, D, E and F Block Auction Closes, 
No. 71744 (released Jan. 14, 1997).
---------------------------------------------------------------------------

    45. Narrowband PCS. The Commission has auctioned nationwide and 
regional licenses for narrowband PCS. There are 11 nationwide and 30 
regional licensees for narrowband PCS. The Commission does not have 
sufficient information to determine whether any of these licensees are 
small businesses within the SBA-approved definition for radiotelephone 
companies. At present, there have been no auctions held for the major 
trading area (MTA) and basic trading area (BTA) narrowband PCS 
licenses. The Commission anticipates a total of 561 MTA licenses and 
2,958 BTA licenses will be awarded by auction. Such auctions have not 
yet been scheduled, however. Given that nearly all radiotelephone 
companies have no more than 1,500 employees and that no reliable 
estimate of the number of prospective MTA and BTA narrowband licensees 
can be made, we assume, for purposes of this IRFA, that all of the 
licenses will be awarded to small entities, as that term is defined by 
the SBA.
    46. Rural Radiotelephone Service. The Commission has not adopted a 
definition of small entity specific to the Rural Radiotelephone 
Service.\139\ A significant subset of the Rural Radiotelephone Service 
is the Basic Exchange Telephone Radio Systems (BETRS).\140\ We will use 
the SBA's definition applicable to radiotelephone companies, i.e., an 
entity employing no more than 1,500 persons.\141\ There are 
approximately 1,000 licensees in the Rural Radiotelephone Service, and 
we estimate that almost all of them qualify as small entities under the 
SBA's definition.
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    \139\ The service is defined in Sec. 22.99 of the Commission's 
Rules, 47 CFR 22.99.
    \140\ BETRS is defined in Secs. 22.757 and 22.759 of the 
Commission's Rules, 47 CFR 22.757 and 22.759.
    \141\ 13 CFR 121.201, SIC code 4812.
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    47. Air-Ground Radiotelephone Service. The Commission has not 
adopted a definition of small entity specific to the Air-Ground 
Radiotelephone Service.\142\ Accordingly, we will use the SBA's 
definition applicable to radiotelephone companies, i.e., an entity 
employing no more than 1,500 persons.\143\ There are approximately 100 
licensees in the Air-Ground Radiotelephone Service, and we estimate 
that almost all of them qualify as small under the SBA definition.
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    \142\ The service is defined in Sec. 22.99 of the Commission's 
Rules, 47 CFR 22.99.
    \143\ 13 CFR 121.201, SIC code 4812.
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    48. Specialized Mobile Radio (SMR). The Commission awards bidding 
credits in auctions for geographic area 800 MHz and 900 MHz SMR 
licenses to firms that had revenues of no more than $15 million in each 
of the three previous calendar years.\144\ In the context of 900 MHz 
SMR, this regulation defining ``small entity'' has been approved by the 
SBA; approval concerning 800 MHz SMR is being sought.
---------------------------------------------------------------------------

    \144\ 47 CFR 90.814(b)(1).
---------------------------------------------------------------------------

    49. The proposed fees in the NPRM apply to SMR providers in the 800 
MHz and 900 MHz bands that either hold geographic area licenses or have 
obtained extended implementation authorizations. We do not know how 
many firms provide 800 MHz or 900 MHz geographic area SMR service 
pursuant to extended implementation authorizations, nor how many of 
these providers have annual revenues of no more than $15 million. One 
firm has over $15 million in revenues. We assume, for purposes of this 
IRFA, that all of the remaining existing extended implementation 
authorizations are held by small entities, as that term is defined by 
the SBA.
    50. For geographic area licenses in the 900 MHz SMR band, there are 
60 who qualified as small entities. For the 800 MHz SMR's, 38 are small 
or very small entities.
    51. Private Land Mobile Radio (PLMR). PLMR systems serve an 
essential role in a range of industrial, business, land transportation, 
and public safety activities. These radios are used by companies of all 
sizes operating in all U.S. business categories. The Commission has not 
developed a definition of small entity specifically applicable to PLMR 
licensees due to the vast array of PLMR users. For the purpose of 
determining whether a licensee is a small business as defined by the 
SBA, each licensee would need

[[Page 19592]]

to be evaluated within its own business area.
    52. The Commission is unable at this time to estimate the number of 
small businesses which could be impacted by the rules. However, the 
Commission's 1994 Annual Report on PLMRs \145\ indicates that at the 
end of fiscal year 1994 there were 1,087,267 licensees operating 
12,481,989 transmitters in the PLMR bands below 512 MHz. Because any 
entity engaged in a commercial activity is eligible to hold a PLMR 
license, the proposed rules in this context could potentially impact 
every small business in the United States.
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    \145\ Federal Communications Commission, 60th Annual Report, 
Fiscal Year 1994, at 116.
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    53. Amateur Radio Service. We estimate that 8,000 applicants will 
apply for vanity call signs in FY 2000. All are presumed to be 
individuals. All other amateur licensees are exempt from payment of 
regulatory fees.
    54. Aviation and Marine Radio Service. Small businesses in the 
aviation and marine radio services use a marine very high frequency 
(VHF) radio, any type of emergency position indicating radio beacon 
(EPIRB) and/or radar, a VHF aircraft radio, and/or any type of 
emergency locator transmitter (ELT). The Commission has not developed a 
definition of small entities specifically applicable to these small 
businesses. Therefore, the applicable definition of small entity is the 
definition under the SBA rules for radiotelephone communications.\146\
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    \146\ 13 CFR 121.201, SIC code 4812.
---------------------------------------------------------------------------

    55. Most applicants for recreational licenses are individuals. 
Approximately 581,000 ship station licensees and 131,000 aircraft 
station licensees operate domestically and are not subject to the radio 
carriage requirements of any statute or treaty. Therefore, for purposes 
of our evaluations and conclusions in this IRFA, we estimate that there 
may be at least 712,000 potential licensees which are individuals or 
are small entities, as that term is defined by the SBA. We estimate, 
however, that only 16,800 will be subject to FY 2000 regulatory fees.
    56. Fixed Microwave Services. Microwave services include common 
carrier,\147\ private-operational fixed,\148\ and broadcast auxiliary 
radio services.\149\ At present, there are approximately 22,015 common 
carrier fixed licensees and 61,670 private operational-fixed licensees 
and broadcast auxiliary radio licensees in the microwave services. The 
Commission has not yet defined a small business with respect to 
microwave services. For purposes of this IRFA, we will utilize the 
SBA's definition applicable to radiotelephone companies--i.e., an 
entity with no more than 1,500 persons.\150\ We estimate, for this 
purpose, that all of the Fixed Microwave licensees (excluding broadcast 
auxiliary licensees) would qualify as small entities under the SBA 
definition for radiotelephone companies.
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    \147\ 47 CFR 101 et seq. (formerly, part 21 of the Commission's 
Rules).
    \148\ Persons eligible under parts 80 and 90 of the Commission's 
rules can use Private Operational-Fixed Microwave services. See 47 
CFR parts 80 and 90. Stations in this service are called 
operational-fixed to distinguish them from common carrier and public 
fixed stations. Only the licensee may use the operational-fixed 
station, and only for communications related to the licensee's 
commercial, industrial, or safety operations.
    \149\ Auxiliary Microwave Service is governed by part 74 of 
Title 47 of the Commission's Rules. See 47 CFR 74 et seq. Available 
to licensees of broadcast stations and to broadcast and cable 
network entities, broadcast auxiliary microwave stations are used 
for relaying broadcast television signals from the studio to the 
transmitter, or between two points such as a main studio and an 
auxiliary studio. The service also includes mobile TV pickups, which 
relay signals from a remote location back to the studio.
    \150\ 13 CFR 121.201, SIC 4812.
---------------------------------------------------------------------------

    57. Public Safety Radio Services. Public Safety radio services 
include police, fire, local government, forestry conservation, highway 
maintenance, and emergency medical services.\151\ There are a total of 
approximately 127,540 licensees within these services. Governmental 
entities \152\ as well as private businesses comprise the licensees for 
these services. As indicated supra in paragraph four of this IRFA, all 
governmental entities with populations of less than 50,000 fall within 
the definition of a small entity.\153\ All licensees in this category 
are exempt from the payment of regulatory fees.
---------------------------------------------------------------------------

    \151\ With the exception of the special emergency service, these 
services are governed by Subpart B of part 90 of the Commission's 
Rules, 47 CFR 90.15 through 90.27. The police service includes 
26,608 licensees that serve state, county, and municipal enforcement 
through telephony (voice), telegraphy (code) and teletype and 
facsimile (printed material). The fire radio service includes 22,677 
licensees comprised of private volunteer or professional fire 
companies as well as units under governmental control. The local 
government service that is presently comprised of 40,512 licensees 
that are state, county, or municipal entities that use the radio for 
official purposes not covered by other public safety services. There 
are 7,325 licensees within the forestry service which is comprised 
of licensees from state departments of conservation and private 
forest organizations who set up communications networks among fire 
lookout towers and ground crews. The 9,480 state and local 
governments are licensed to highway maintenance service provide 
emergency and routine communications to aid other public safety 
services to keep main roads safe for vehicular traffic. The 1,460 
licensees in the Emergency Medical Radio Service (EMRS) use the 39 
channels allocated to this service for emergency medical service 
communications related to the delivery of emergency medical 
treatment. 47 CFR 90.15 through 90.27. The 19,478 licensees in the 
special emergency service include medical services, rescue 
organizations, veterinarians, handicapped persons, disaster relief 
organizations, school buses, beach patrols, establishments in 
isolated areas, communications standby facilities, and emergency 
repair of public communications facilities. 47 CFR 90.33 through 
90.55.
    \152\ 47 CFR 1.1162.
    \153\ 5 U.S.C. 601(5).
---------------------------------------------------------------------------

    58. Personal Radio Services. Personal radio services provide short-
range, low power radio for personal communications, radio signaling, 
and business communications not provided for in other services. The 
services include the citizen's band (CB) radio service, general mobile 
radio service (GMRS), radio control radio service, and family radio 
service (FRS).\154\ Inasmuch as the CB, GMRS, and FRS licensees are 
individuals, no small business definition applies for these services. 
We are unable at this time to estimate the number of other licensees 
that would qualify as small under the SBA's definition; however, only 
GMRS licensees are subject to regulatory fees.
---------------------------------------------------------------------------

    \154\ Licensees in the Citizens Band (CB) Radio Service, General 
Mobile Radio Service (GMRS), Radio Control (R/C) Radio Service and 
Family Radio Service (FRS) are governed by Subpart D, Subpart A, 
Subpart C, and Subpart B, respectively, of part 95 of the 
Commission's Rules. 47 CFR 95.401 through 95.428; 95.1 through 
95.181; 95.201 through 95.225; 47 CFR 95.191 through 95.194.
---------------------------------------------------------------------------

    59. Offshore Radiotelephone Service. This service operates on 
several UHF TV broadcast channels that are not used for TV broadcasting 
in the coastal area of the states bordering the Gulf of Mexico.\155\ At 
present, there are approximately 55 licensees in this service. We are 
unable at this time to estimate the number of licensees that would 
qualify as small under the SBA's definition for radiotelephone 
communications.
---------------------------------------------------------------------------

    \155\ This service is governed by subpart I of part 22 of the 
Commission's Rules. See 47 CFR 22.1001 through 22.1037.
---------------------------------------------------------------------------

    60. Wireless Communications Services. This service can be used for 
fixed, mobile, radiolocation and digital audio broadcasting satellite 
uses. The Commission defined ``small business'' for the wireless 
communications services (WCS) auction as an entity with average gross 
revenues of $40 million for each of the three preceding years, and a 
``very small business'' as an entity with average gross revenues of $15 
million for each of the three preceding years. The Commission auctioned 
geographic area licenses in the WCS service. In the auction, there were 
seven winning bidders that qualified as very small business entities, 
and one that qualified as a small business entity. We conclude that the 
number of geographic

[[Page 19593]]

area WCS licensees affected includes these eight entities.

IV. Description of Projected Reporting, Recordkeeping and Other 
Compliance Requirements

    61. With certain exceptions, the Commission's Schedule of 
Regulatory Fees applies to all Commission licensees and regulatees. 
Most licensees will be required to count the number of licenses or call 
signs authorized, complete and submit an FCC Form 159 (``FCC Remittance 
Advice''), and pay a regulatory fee based on the number of licenses or 
call signs.\156\ Interstate telephone service providers must compute 
their annual regulatory fee based on their interstate and international 
end-user revenue using information they already supply to the 
Commission in compliance with the Form 499-A, Telecommunications 
Reporting Worksheet, and they must complete and submit the FCC Form 
159. Compliance with the fee schedule will require some licensees to 
tabulate the number of units (e.g., cellular telephones, pagers, cable 
TV subscribers) they have in service, and complete and submit an FCC 
Form 159. Licensees ordinarily will keep a list of the number of units 
they have in service as part of their normal business practices. No 
additional outside professional skills are required to complete the FCC 
Form 159, and it can be completed by the employees responsible for an 
entity's business records.
---------------------------------------------------------------------------

    \156\ The following categories are exempt from the Commission's 
Schedule of Regulatory Fees: Amateur radio licensees (except 
applicants for vanity call signs) and operators in other non-
licensed services (e.g., Personal Radio, part 15, ship and 
aircraft). Governments and non-profit (exempt under section 501(c) 
of the Internal Revenue Code) entities are exempt from payment of 
regulatory fees and need not submit payment. Non-commercial 
educational broadcast licensees are exempt from regulatory fees as 
are licensees of auxiliary broadcast services such as low power 
auxiliary stations, television auxiliary service stations, remote 
pickup stations and aural broadcast auxiliary stations where such 
licenses are used in conjunction with commonly owned non-commercial 
educational stations. Emergency Alert System licenses for auxiliary 
service facilities are also exempt as are instructional television 
fixed service licensees. Regulatory fees are automatically waived 
for the licensee of any translator station that: (1) Is not licensed 
to, in whole or in part, and does not have common ownership with, 
the licensee of a commercial broadcast station; (2) does not derive 
income from advertising; and (3) is dependent on subscriptions or 
contributions from members of the community served for support. 
Receive only earth station permittees are exempt from payment of 
regulatory fees. A regulatee will be relieved of its fee payment 
requirement if its total fee due, including all categories of fees 
for which payment is due by the entity, amounts to less than $10.
---------------------------------------------------------------------------

    62. Each licensee must submit the FCC Form 159 to the Commission's 
lockbox bank after computing the number of units subject to the fee. As 
an option, licensees are permitted to file electronically or on 
computer diskette to minimize the burden of submitting multiple copies 
of the FCC Form 159. This latter, optional procedure may require 
additional technical skills. Applicants who pay small fees in advance 
supply fee information as part of their application and do not need to 
use FCC Form 159.
    63. Licensees and regulatees are advised that failure to submit the 
required regulatory fee in a timely manner will subject the licensee or 
regulatee to a late payment fee of 25 percent in addition to the 
required fee.\157\ Until payment is received, no new or pending 
applications will be processed, and existing authorizations may be 
subject to rescission.\158\ Further, in accordance with the Debt 
Collection Improvement Act of 1996, federal agencies may bar a person 
or entity from obtaining a federal loan or loan insurance guarantee if 
that person or entity fails to pay a delinquent debt owed to any 
federal agency.\159\ Nonpayment of regulatory fees is a debt owed the 
United States pursuant to 31 U.S.C. 3711 et seq., and the Debt 
Collection Improvement Act of 1996, Public Law 194-134. Appropriate 
enforcement measures, e.g., interest as well as administrative and 
judicial remedies, may be exercised by the Commission. Thus, debts owed 
to the Commission may result in a person or entity being denied a 
federal loan or loan guarantee pending before another federal agency 
until such obligations are paid.\160\
---------------------------------------------------------------------------

    \157\ 47 U.S.C. 1.1164(a).
    \158\ 47 U.S.C. 1.1164(c).
    \159\ Public Law 104-134, 110 Stat. 1321 (1996).
    \160\ 31 U.S.C. 7701(c)(2)(B).
---------------------------------------------------------------------------

    64. The Commission's rules currently provide for relief in 
exceptional circumstances. Persons or entities that believe they have 
been placed in the wrong regulatory fee category or are experiencing 
extraordinary and compelling financial hardship, upon a showing that 
such circumstances override the public interest in reimbursing the 
Commission for its regulatory costs, may request a waiver, reduction or 
deferment of payment of the regulatory fee.\161\ However, timely 
submission of the required regulatory fee must accompany requests for 
waivers or reductions. This will avoid any late payment penalty if the 
request is denied. The fee will be refunded if the request is granted. 
In exceptional and compelling instances (where payment of the 
regulatory fee along with the waiver or reduction request could result 
in reduction of service to a community or other financial hardship to 
the licensee), the Commission will accept a petition to defer payment 
along with a waiver or reduction request.
---------------------------------------------------------------------------

    \161\ 47 U.S.C. 1.1166.
---------------------------------------------------------------------------

V. Steps Taken To Minimize Significant Economic Impact on Small 
Entities, and Significant Alternatives Considered

    65. The RFA requires an agency to describe any significant 
alternatives that it has considered in reaching its proposed approach, 
which may include the following four alternatives: (1) The 
establishment of differing compliance or reporting requirements or 
timetables that take into account the resources available to small 
entities; (2) the clarification, consolidation, or simplification of 
compliance or reporting requirements under the rule for small entities; 
(3) the use of performance, rather than design, standards; and (4) an 
exemption from coverage of the rule, or any part thereof, for small 
entities. As described in Section IV of this IRFA, supra, we have 
created procedures in which all fee-filing licensees and regulatees use 
a single form, FCC Form 159, and have described in plain language the 
general filing requirements. We have also created Attachment F, infra, 
which gives ``Detailed Guidance on Who Must Pay Regulatory Fees.'' 
Because the collection of fees is statutory, our efforts at proposing 
alternatives are constrained and, throughout these annual fee 
proceedings, have been largely directed toward simplifying the 
instructions and necessary procedures for all filers. At this time, we 
invite comment on other alternatives that might simplify our fee 
procedures or otherwise benefit small entities, while remaining 
consistent with our statutory responsibilities in this proceeding.
    66. The Omnibus Consolidated and Emergency Supplemental 
Appropriations Act for FY 1999, Public Law 105-277 requires the 
Commission to revise its Schedule of Regulatory Fees in order to 
recover the amount of regulatory fees that Congress, pursuant to 
Section 9(a) of the Communications Act, as amended, has required the 
Commission to collect for Fiscal Year (FY) 2000.\162\ As noted, we seek 
comment on the proposed methodology for implementing these statutory 
requirements and any other potential impact of these proposals on small 
entities.
---------------------------------------------------------------------------

    \162\ 47 U.S.C. 159(a).
---------------------------------------------------------------------------

    67. With the use of actual cost accounting data for computation of

[[Page 19594]]

regulatory fees, we found that some fees which were very small in 
previous years would have increased dramatically. The methodology 
proposed in this NPRM minimizes this impact by limiting the amount of 
increase and shifting costs to other services which, for the most part, 
are larger entities.
    68. Several categories of licensees and regulatees are exempt from 
payment of regulatory fees. See, e.g., footnote 149, supra, and 
Attachment F of the NPRM, infra.

VI. Federal Rules that May Duplicate, Overlap, or Conflict With the 
Proposed Rules

    69. None.

Attachment B--Sources of Payment Unit Estimates for FY 2000

    In order to calculate individual service fees for FY 2000, we 
adjusted FY 1999 payment units for each service to more accurately 
reflect expected FY 2000 payment liabilities. We obtained our updated 
estimates through a variety of means. For example, we used Commission 
licensee data bases, actual prior year payment records and industry and 
trade association projections when available. We tried to obtain 
verification for these estimates from multiple sources and, in all 
cases, we compared FY 2000 estimates with actual FY 1999 payment units 
to ensure that our revised estimates were reasonable. Where 
appropriate, we adjusted and/or rounded our final estimates to take 
into consideration the fact that certain variables that impact on the 
number of payment units cannot yet be estimated exactly. These include 
an unknown number of waivers and/or exemptions that may occur in FY 
2000 and the fact that, in many services, the number of actual 
licensees or station operators fluctuates from time to time due to 
economic, technical or other reasons. Therefore, when we note, for 
example, that our estimated FY 2000 payment units are based on FY 1999 
actual payment units, it does not necessarily mean that our FY 2000 
projection is exactly the same number as FY 1999. It means that we have 
either rounded the FY 2000 number or adjusted it slightly to account 
for these variables.

------------------------------------------------------------------------
                                             Sources of payment unit
              Fee category                          estimates
------------------------------------------------------------------------
Land Mobile (All), Microwave, 218-219    Based on Wireless
 MHz \163\, Marine (Ship & Coast),        Telecommunications Bureau
 Aviation (Aircraft & Ground), GMRS,      (WTB) projections of new
 Amateur Vanity Call Signs, Domestic      applications and renewals
 Public Fixed.                            taking into consideration
                                          existing Commission licensee
                                          data bases. Aviation
                                          (Aircraft) and Marine (Ship)
                                          estimates have been adjusted
                                          to take into consideration the
                                          licensing of portions of these
                                          services on a voluntary basis.
CMRS Mobile Services...................  Based on industry estimates of
                                          growth between FY 1999 and FY
                                          2000 and Wireless
                                          Telecommunications Bureau
                                          projections of new
                                          applications and average
                                          number of mobile units
                                          associated with each
                                          application.
CMRS Messaging Services................  Based on industry estimates of
                                          the number of units in
                                          operation.
AM/FM Radio Stations...................  Based on actual FY 1999 payment
                                          units.
UHF/VHF Television Stations............  Based on actual FY 1999 payment
                                          units.
AM/FM/TV Construction Permits..........  Based on actual FY 1999 payment
                                          units.
LPTV, Translators and Boosters.........  Based on actual FY 1999 payment
                                          units.
Auxiliaries............................  Based on Wireless
                                          Telecommunications Bureau
                                          (WTB) projections.
MDS/MMDS...............................  Based on actual FY 1999 payment
                                          units.
Cable Antenna Relay Service (CARS).....  Based on actual FY 1999 payment
                                          units.
Cable Television System Subscribers....  Based on Cable Services Bureau
                                          and industry estimates of
                                          subscribership.
Interstate Telephone Service Providers.  Based on actual FY 1999
                                          interstate revenues associated
                                          with the Telecommunications
                                          Reporting Worksheet, adjusted
                                          to take into consideration FY
                                          2000 revenue growth in this
                                          industry as estimated by the
                                          Common Carrier Bureau.
Earth Stations.........................  Based on actual FY 1999 payment
                                          units.
Space Stations (GSOs & NGSOs)..........  Based on International Bureau
                                          licensee data bases.
International Bearer Circuits..........  Based on actual FY 1999 payment
                                          units.
International HF Broadcast Stations,     Based on actual FY 1999 payment
 International Public Fixed Radio         units.
 Service.
------------------------------------------------------------------------

    \163\ The Wireless Telecommunications Bureau's staff advises 
that they do not anticipate receiving any applications for 218-219 
MHz (formerly IVDS) in FY 2000.

                                           Attachment C: Calculation of Revenue Requirements and Pro-Rata Fees
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                Rounded
                                                                                                Computed FY      Pro-rated      new FY
           Fee category             FY 2000  payment    x     FY 1999    x     Payment    =    2000 revenue       revenue        2000       Expected FY
                                          units                 fee             years           requirement     requirement   regulatory   2000 revenue
                                                                                                                    \1\           fee
--------------------------------------------------------------------------------------------------------------------------------------------------------
PLMRS (Exclusive Use)............              3,800               13                5               247,000         239,408          13         239,408
Microwave........................              6,250               13               10               812,500         787,525          13         787,525
218-219 MHz (Formerly IVDS)......                  0               13               10                     0               0           0               0
Marine (Ship)....................              6,300                7               10               441,000         427,444           7         427,444
GMRS/PLMRS (Shared Use)..........             59,000                7                5             2,065,000       2,001,526           7       2,001,526
Aviation (Aircraft)..............              3,300                7               10               231,000         223,889           7         223,889

[[Page 19595]]

 
Marine (Coast)...................              1,500                7                5                52,500          50,886           7          50,886
Aviation (Ground)................              1,750                7                5                61,250          59,367           7          59,367
Amateur Vanity Call Signs........              8,000              1.4               10               112,000         108,557         1.4         112,000
AM Class A.......................                 72            1,942                1               139,824         135,526       1,875         135,000
AM Class B.......................              1,155            1,491                1             1,722,105       1,669,171       1,450       1,674,750
AM Class C.......................                806              738                1               594,828         576,544         715         576,290
AM Class D.......................              2,001              970                1             1,940,970       1,881,308         940       1,880,940
FM Classes A, B1 & C3............              2,656            1,491                1             3,960,096       3,838,370       1,445       3,851,200
FM Classes B, C, C1 & C2.........              2,555            1,942                1             4,961,810       4,809,293       1,875       4,790,625
AM Construction Permits..........                 60              260                1                15,600          15,120         250          15,000
FM Construction Permits..........                341              780                1               265,980         257,804         755         257,455
Satellite TV.....................                 70            1,300                1                91,000          88,203       1,250          87,500
Satellite TV Construction Permit.                  4              460                1                 1,840           1,783         445           1,780
VHF Markets 1-10.................                 44           41,225                1             1,813,900       1,758,144      39,950       1,757,800
VHF Markets 11-25................                 54           34,325                1             1,853,550       1,796,575      33,275       1,796,850
VHF Markets 26-50................                 67           23,475                1             1,572,825       1,524,479      22,750       1,524,250
VHF Markets 51-100...............                115           13,150                1             1,512,250       1,465,766      12,750       1,466,250
VHF Remaining Markets............                195            3,400                1               663,000         642,621       3,300         643,500
VHF Construction Permits.........                 19            2,775                1                52,725          51,104       2,700          51,300
UHF Markets 1-10.................                 70           15,550                1             1,088,500       1,055,041      15,075       1,055,250
UHF Markets 11-25................                 75           11,775                1               883,125         855,979      11,425         856,875
UHF Markets 26-50................                102            7,300                1               744,600         721,712       7,075         721,650
UHF Markets 51-100...............                148            4,350                1               643,800         624,011       4,225         625,300
UHF Remaining Markets............                163            1,175                1               191,525         185,638       1,150         187,450
UHF Construction Permits.........                 93            2,900                1               269,700         261,410       2,800         260,400
Auxiliaries......................             22,500               12                1               270,000         261,701          12         261,701
International HF Broadcast.......                  5              520                1                 2,600           2,520         505           2,525
LPTV/Translators/Boosters........              2,710              290                1               785,900         761,743         280         758,800
CARS.............................              1,687               55                1                92,785          89,933          53          89,933
Cable Systems....................         66,690,000             0.48                1            32,011,200      31,027,233        0.47      31,027,233
Interstate Telephone Service          73,900,000,000          0.00121                1            89,419,000      86,670,419     0.00117      86,670,419
 Providers.......................
CMRS Mobile Services (Cellular/           82,000,000             0.32                1            26,240,000      25,433,429        0.31      25,433,429
 Public Mobile)..................
CMRS Messaging Services..........         38,900,000             0.04                1             1,556,000       1,508,171        0.04       1,508,171
MDS/MMDS/LMDS....................              3,036              285                1               865,260         838,663         275         834,900
International Bearer Circuits....            595,614                7                1             4,169,298       4,041,141           7       4,041,141
International Public Fixed.......                  3              410                1                 1,230           1,192         395           1,185
Earth Stations...................              2,679              180                1               482,220         467,397         175         468,825
Space Stations (Geostationary)...               63.5          130,550                1             6,201,125       6,010,513      94,650       6,010,275
Space Stations (Non-                               3          180,800                1               542,400         525,728     175,250         525,750
 geostationary)..................
                                  ----------------------------------------------------------------------------------------------------------------------
    Total Estimated Revenue        ..................       ..........       ..........          191,644,821     185,754,000  ..........     185,753,420
     Collected...................
                                  ======================================================================================================================

[[Page 19596]]

 
    Total Revenue Requirement....  ..................       ..........       ..........          185,754,000     185,754,000  ..........     185,754,000
                                  ======================================================================================================================
Difference.......................  ..................       ..........       ..........            5,890,821               0  ..........          (243)
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\0.969261778 factor applied.


            Attachment D: FY 2000 Schedule of Regulatory Fees
                               [Proposed]
------------------------------------------------------------------------
                                                              Annual
                      Fee category                        regulatory fee
                                                             (U.S. $'s)
------------------------------------------------------------------------
PLMRS (per license) (Exclusive Use) (47 CFR part 90)....              13
Microwave (per license) (47 CFR part 101)...............              13
218-219 MHz (Formerly Interactive Video Data Service)                 13
 (per license) (47 CFR part 95).........................
Marine (Ship) (per station) (47 CFR part 80)............               7
Marine (Coast) (per license) (47 CFR part 80)...........               7
General Mobile Radio Service (per license) (47 CFR part                7
 95)....................................................
PLMRS (Shared Use) (per license) (47 CFR part 90).......               7
Aviation (Aircraft) (per station) (47 CFR part 87)......               7
Aviation (Ground) (per license) (47 CFR part 87)........               7
Amateur Vanity Call Signs (per call sign) (47 CFR part              1.40
 97)....................................................
CMRS Mobile Services (per unit) (47 CFR parts 20, 22,                .31
 24, 27, 80 and 90).....................................
CMRS Messaging Services (per unit) (47 CFR parts 20, 22,             .04
 24 and 90).............................................
Multipoint Distribution Services (Includes MMDS &                    275
 LMDS)(per call sign) (47 CFR parts 21 and 101).........
AM Radio Construction Permits...........................             250
FM Radio Construction Permits...........................             755
TV (47 CFR part 73) VHF Commercial:
    Markets 1-10........................................          39,950
    Markets 11-25.......................................          33,275
    Markets 26-50.......................................          22,750
    Markets 51-100......................................          12,750
    Remaining Markets...................................           3,300
    Construction Permits................................           2,700
TV (47 CFR part 73) UHF Commercial:
    Markets 1-10........................................          15,075
    Markets 11-25.......................................          11,425
    Markets 26-50.......................................           7,075
    Markets 51-100......................................           4,225
    Remaining Markets...................................           1,150
    Construction Permits................................           2,800
Satellite Television Stations (All Markets).............           1,250
Construction Permits--Satellite Television Stations.....             445
Low Power TV, TV/FM Translators & Boosters (47 CFR part              280
 74)....................................................
Broadcast Auxiliary (47 CFR part 74)....................              12
CARS (47 CFR part 78)...................................              53
Cable Television Systems (per subscriber) (47 CFR part               .47
 76)....................................................
Interstate Telephone Service Providers (per revenue               .00117
 dollar)................................................
Earth Stations (47 CFR part 25).........................             175
Space Stations (per operational station in geostationary          94,650
 orbit) (47 CFR part 25) also includes Direct Broadcast
 Satellite Service (per operational station) (47 CFR
 part 100)..............................................
Space Stations (per operational system in non-                   175,250
 geostationary orbit) (47 CFR part 25)..................
International Bearer Circuits (per active 64KB circuit).               7
International Public Fixed (per call sign) (47 CFR part              395
 23)....................................................
International (HF) Broadcast (47 CFR part 73)...........             505
------------------------------------------------------------------------


                                                              Radio Station Regulatory Fees
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                           FM classes A,   FM classes B,
                    Population served                       AM class A      AM class B      AM class C      AM class D        B1 & C3       C, C1 & C2
--------------------------------------------------------------------------------------------------------------------------------------------------------
20,000..................................................             400             300             200             250             300             400
20,001-50,000...........................................             800             625             300             425             625             800
50.001-125,000..........................................           1,325             850             425             650             850           1,325
125,001-400,000.........................................           1,950           1,350             625             775           1,350           1,950
400,001-1,000,000.......................................           2,725           2,200           1,200           1,450           2,200           2,725

[[Page 19597]]

 
>1,000,000..............................................           4,375           3,575           1,725           2,225           3,575           4,375
--------------------------------------------------------------------------------------------------------------------------------------------------------


                   Attachment E: Comparison Between FY 1999 & FY 2000 Proposed Regulatory Fees
----------------------------------------------------------------------------------------------------------------
                                                                      Annual                          Annual
                          Fee category                            regulatory fee   NPRM proposed  regulatory fee
                                                                      FY 1999      fee  FY 2000       FY 2000
----------------------------------------------------------------------------------------------------------------
PLMRS (per license) (Exclusive Use) (47 CFR part 90)............              13              13  ..............
Microwave (per license) (47 CFR part 101).......................              13              13  ..............
218-219 MHz (Formerly Interactive Video Data Service) (per                    13              13  ..............
 license) (47 CFR part 95)......................................
Marine (Ship) (per station) (47 CFR part 80)....................               7               7  ..............
Marine (Coast) (per license) (47 CFR part 80)...................               7               7  ..............
General Mobile Radio Service (per license) (47 CFR part 95).....               7               7  ..............
PLMRS (Shared Use) (47 CFR part 90).............................               7               7  ..............
Aviation (Aircraft) (per station) (47 CFR part 87)..............               7               7  ..............
Aviation (Ground) (per license) (47 CFR part 87)................               7               7  ..............
Amateur Vanity Call Signs (per call sign) (47 CFR part 97)......            1.40            1.40  ..............
CMRS Mobile Services (per unit) (47 CFR parts 20, 22, 24, 27, 80             .32             .31  ..............
 and 90)........................................................
CMRS Messaging Services (per unit) (47 CFR parts 20, 22, 24 and              .04             .04  ..............
 90)............................................................
Multipoint Distribution Services (Includes MMDS and LMDS)(per                285             275  ..............
 call sign) (47 CFR part 21 and 101)............................
AM Construction Permits.........................................             260             250  ..............
FM Construction Permits.........................................             780             755  ..............
TV (47 CFR part 73) VHF Commercial:
    Markets 1-10................................................          41,225          39,950  ..............
    Markets 11-25...............................................          34,325          33,275  ..............
    Markets 26-50...............................................          23,475          22,750  ..............
    Markets 51-100..............................................          13,150          12,750  ..............
    Remaining Markets...........................................           3,400           3,300  ..............
    Construction Permits........................................           2,775           2,700  ..............
TV (47 CFR part 73) UHF Commercial:
    Markets 1-10................................................          15,550          15,075  ..............
    Markets 11-25...............................................          11,775          11,425  ..............
    Markets 26-50...............................................           7,300           7,075  ..............
    Markets 51-100..............................................           4,350           4,225  ..............
    Remaining Markets...........................................           1,175           1,150  ..............
    Construction Permits........................................           2,900           2,800  ..............
Satellite Television Stations (All Markets).....................           1,300           1,250  ..............
Construction Permits--Satellite Television Stations.............             460             445  ..............
Low Power TV, TV/FM Translators & Boosters (47 CFR part 74).....             290             280  ..............
Broadcast Auxiliary (47 CFR part 74)............................              12              12  ..............
CARS (47 CFR part 78)...........................................              55              53  ..............
Earth Stations (47 CFR part 25).................................             180             175  ..............
Cable Television Systems (per subscriber) (47 CFR part 76)......             .48             .47  ..............
Interstate Telephone Service Providers (per revenue dollar).....          .00121          .00117  ..............
Space Stations (per operational station in geostationary orbit)          130,550          94,650  ..............
 (47 CFR part 25) also includes Direct Broadcast Satellite
 Service (per operational station) (47 CFR part 100)............
Space Stations (per operational system in non-geostationary              180,800         175,250  ..............
 orbit) (47 CFR part 25)........................................
International Bearer Circuits (per active 64KB circuit).........               7               7  ..............
International Public Fixed (per call sign) (47 CFR part 23).....             410             395  ..............
International (HF) Broadcast (47 CFR part 73)...................             520             505  ..............
----------------------------------------------------------------------------------------------------------------


                                                          FY 1999 Radio Station Regulatory Fees
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                           FM classes A,   FM classes B,
                    Population served                       AM class A      AM class B      AM class C      AM class D        B1 & C3       C, C1 & C2
--------------------------------------------------------------------------------------------------------------------------------------------------------
20,000..................................................             430             325             225             275             325             430
20,001-50,000...........................................             825             650             325             450             650             825
50,001-125,000..........................................           1,350             875             450             675             875           1,350
125,001-400,000.........................................           2,000           1,400             675             825           1,400           2,000
400,001-1,000,000.......................................           2,750           2,250           1,250           1,500           2,250           2,750
>1,000,000..............................................           4,400           3,600           1,750           2,250           3,600           4,400
--------------------------------------------------------------------------------------------------------------------------------------------------------


[[Page 19598]]


                                                          FY 2000 Radio Station Regulatory Fees
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                           FM classes A,   FM classes B,
                    Population served                       AM class A      AM class B      AM class C      AM class D        B1 & C3       C, C1 & C2
--------------------------------------------------------------------------------------------------------------------------------------------------------
20,000..................................................             400             300             200             250             300             400
20,001-50,000...........................................             800             625             300             425             625             800
50,001-125,000..........................................           1,325             850             425             650             850           1,325
125,001-400,000.........................................           1,950           1,350             625             775           1,350           1,950
400,001-1,000,000.......................................           2,725           2,200           1,200           1,450           2,200           2,725
>1,000,000..............................................           4,375           3,575           1,725           2,225           3,575           4,375
--------------------------------------------------------------------------------------------------------------------------------------------------------

Attachment F: Detailed Guidance on Who Must Pay Regulatory Fees

    1. The guidelines below provide an explanation of regulatory fee 
categories established by the Schedule of Regulatory Fees in section 9 
(g) of the Communications Act,\164\ as modified in the instant NPRM. 
Where regulatory fee categories need interpretation or clarification, 
we have relied on the legislative history of section 9, our own 
experience in establishing and regulating the Schedule of Regulatory 
Fees for Fiscal Years (FY) 1994, 1995, 1996, 1997, 1998 and 1999 and 
the services subject to the fee schedule. The categories and amounts 
set out in the schedule have been modified to reflect changes in the 
number of payment units, additions and changes in the services subject 
to the fee requirement and the benefits derived from the Commission's 
regulatory activities, and to simplify the structure of the schedule. 
The schedule may be similarly modified or adjusted in future years to 
reflect changes in the Commission's budget and in the services 
regulated by the Commission.\165\
---------------------------------------------------------------------------

    \164\ 47 U.S.C. 159(g)
    \165\ 47 U.S.C. 159(b)(2), (3).
---------------------------------------------------------------------------

    2. Exemptions. Governments and nonprofit entities are exempt from 
paying regulatory fees and should not submit payment. A nonprofit 
entity is required to have on file with the Commission an IRS 
Determination Letter documenting that it is exempt from taxes under 
section 501 of the Internal Revenue Code or the certification of a 
governmental authority attesting to its nonprofit status. In instances 
where the IRS Determination Letter or the letter of certification from 
a governmental authority attesting to its nonprofit status is not 
sufficiently current, the nonprofit entity may be asked to submit more 
current documentation. The governmental exemption applies even where 
the government-owned or community-owned facility is in competition with 
a commercial operation. Other specific exemptions are discussed below 
in the descriptions of other particular service categories.

1. Private Wireless Radio Services

    3. Two levels of statutory fees were established for the Private 
Wireless Radio Services--exclusive use services and shared use 
services. Thus, licensees who generally receive a higher quality 
communication channel due to exclusive or lightly shared frequency 
assignments will pay a higher fee than those who share marginal quality 
assignments. This dichotomy is consistent with the directive of section 
9, that the regulatory fees reflect the benefits provided to the 
licensees.\166\ In addition, because of the generally small amount of 
the fees assessed against Private Wireless Radio Service licensees, 
applicants for new licenses and reinstatements and for renewal of 
existing licenses are required to pay a regulatory fee covering the 
entire license term, with only a percentage of all licensees paying a 
regulatory fee in any one year. Applications for modification or 
assignment of existing authorizations do not require the payment of 
regulatory fees. The expiration date of those authorizations will 
reflect only the unexpired term of the underlying license rather than a 
new license term.
---------------------------------------------------------------------------

    \166\ 47 U.S.C. 159(b)(1)(A).
---------------------------------------------------------------------------

a. Exclusive Use Services
    4. Private Land Mobile Radio Services (PLMRS) (Exclusive Use): 
Regulatees in this category include those authorized under part 90 of 
the Commission's Rules to provide limited access Wireless Radio service 
that allows high quality voice or digital communications between 
vehicles or to fixed stations to further the business activities of the 
licensee. These services, using the 220-222 MHz band and frequencies at 
470 MHz and above, may be offered on a private carrier basis in the 
Specialized Mobile Radio Services (SMRS). \167\ For FY 2000, PMRS 
licensees will pay a $13 annual regulatory fee per license, payable for 
an entire five or ten year license term at the time of application for 
a new, renewal, or reinstatement license.\168\ The total regulatory fee 
due is either $65 for a license with a five-year term or $130 for a 
license with a 10-year term.
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    \167\ This category only applies to licensees of shared-use 
private 220-222 MHz and 470 MHz and above in the Specialized Mobile 
Radio (SMR) service who have elected not to change to the Commercial 
Mobile Radio Service (CMRS). Those who have elected to change to the 
CMRS are referred to paragraph 14 of this Attachment.
    \168\ Although this fee category includes licenses with ten-year 
terms, the estimated volume of ten-year license applications in FY 
2000 is less than one-tenth of one percent and, therefore, is 
statistically insignificant.
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    5. Microwave Services: These services include private and 
commercial microwave systems and private and commercial carrier systems 
authorized under part 101 of the Commission's Rules to provide 
telecommunications services between fixed points on a high quality 
channel of communications. Microwave systems are often used to relay 
data and to control railroad, pipeline, and utility equipment. 
Commercial systems typically are used for video or data transmission or 
distribution. For FY 2000, Microwave licensees will pay a $13 annual 
regulatory fee per license, payable for an entire ten-year license term 
at the time of application for a new, renewal, or reinstatement 
license. The total regulatory fee due is $130 for the ten-year license 
term.
    6. 218-219 MHz (Formerly Interactive Video Data Service (IVDS)): 
The 218-219 MHz service is a two-way, point-to-multi-point radio 
service allocated high quality channels of communications and 
authorized under part 95 of the Commission's Rules. The 218-219 MHz 
service provides information, products, and services, and also the 
capability to obtain responses from subscribers in a specific service 
area. The 218-219 MHz service is offered on a private carrier basis. 
The Commission does not anticipate receiving any applications in the 
218-219 MHz service during FY 2000. However, for FY 2000, we propose 
that the annual regulatory fee for 218-219 MHz licensees be set at $13 
should there be any applications submitted. The total regulatory fee 
due would be $130 for the ten-year license term.

[[Page 19599]]

b. Shared Use Services
    7. Marine (Ship) Service: This service is a shipboard radio service 
authorized under part 80 of the Commission's Rules to provide 
telecommunications between watercraft or between watercraft and shore-
based stations. Radio installations are required by domestic and 
international law for large passenger or cargo vessels. Radio equipment 
may be voluntarily installed on smaller vessels, such as recreational 
boats. The Telecommunications Act of 1996 gave the Commission the 
authority to license certain ship stations by rule rather than by 
individual license. The Commission exercises that authority. Thus, 
private boat operators sailing entirely within domestic U.S. waters and 
who are not otherwise required by treaty or agreement to carry a radio, 
are no longer required to hold a marine license, and they will not be 
required to pay a regulatory fee. For FY 2000, parties required to be 
licensed and those choosing to be licensed for Marine (Ship) Stations 
will pay a $7 annual regulatory fee per station, payable for an entire 
ten-year license term at the time of application for a new, renewal, or 
reinstatement license. The total regulatory fee due is $70 for the ten-
year license term.
    8. Marine (Coast) Service: This service includes land-based 
stations in the maritime services, authorized under part 80 of the 
Commission's Rules, to provide communications services to ships and 
other watercraft in coastal and inland waterways. For FY 2000, 
licensees of Marine (Coast) Stations will pay a $7 annual regulatory 
fee per call sign, payable for the entire five-year license term at the 
time of application for a new, renewal, or reinstatement license. The 
total regulatory fee due is $35 per call sign for the five-year license 
term.
    9. Private Land Mobile Radio Services (PLMRS) (Shared Use): These 
services include Land Mobile Radio Services operating under parts 90 
and 95 of the Commission's Rules. Services in this category provide 
one- or two-way communications between vehicles, persons or fixed 
stations on a shared basis and include radiolocation services, 
industrial radio services, and land transportation radio services. For 
FY 2000, licensees of services in this category will pay a $7 annual 
regulatory fee per call sign, payable for an entire five-year license 
term at the time of application for a new, renewal, or reinstatement 
license. The total regulatory fee due is $35 for the five-year license 
term.
    10. Aviation (Aircraft) Service: These services include stations 
authorized to provide communications between aircraft and between 
aircraft and ground stations and include frequencies used to 
communicate with air traffic control facilities pursuant to part 87 of 
the Commission's Rules. The Telecommunications Act of 1996 gave the 
Commission the authority to license certain aircraft radio stations by 
rule rather than by individual license. The commission exercises that 
authority. Thus, private aircraft operators flying entirely within 
domestic U.S. airspace and who are not otherwise required by treaty or 
agreement to carry a radio are no longer required to hold an aircraft 
license, and they will not be required to pay a regulatory fee. For FY 
2000, parties required to be licensed and those choosing to be licensed 
for Aviation (Aircraft) Stations will pay a $7 annual regulatory fee 
per station, payable for the entire ten-year license term at the time 
of application for a new, renewal, or reinstatement license. The total 
regulatory fee due is $70 per station for the ten-year license term.
    11. Aviation (Ground) Service: This service includes stations 
authorized to provide ground-based communications to aircraft for 
weather or landing information, or for logistical support pursuant to 
part 87 of the Commission's Rules. Certain ground-based stations which 
only serve itinerant traffic, i.e., possess no actual units on which to 
assess a fee, are exempt from payment of regulatory fees. For FY 2000, 
licensees of Aviation (Ground) Stations will pay a $7 annual regulatory 
fee per license, payable for the entire five-year license term at the 
time of application for a new, renewal, or reinstatement license. The 
total regulatory fee is $35 per call sign for the five-year license 
term.
    12. General Mobile Radio Service (GMRS): These services include 
Land Mobile Radio licensees providing personal and limited business 
communications between vehicles or to fixed stations for short-range, 
two-way communications pursuant to part 95 of the Commission's Rules. 
For FY 2000, GMRS licensees will pay a $7 annual regulatory fee per 
license, payable for an entire five-year license term at the time of 
application for a new, renewal or reinstatement license. The total 
regulatory fee due is $35 per license for the five-year license term.
c. Amateur Radio Vanity Call Signs
    13. Amateur Vanity Call Signs: This category covers voluntary 
requests for specific call signs in the Amateur Radio Service 
authorized under part 97 of the Commission's Rules. Applicants for 
Amateur Vanity Call-Signs will continue to pay a $1.40 annual 
regulatory fee per call sign, as prescribed in the FY 1999 fee 
schedule, payable for an entire ten-year license term at the time of 
application for a vanity call sign until the FY 2000 fee schedule 
becomes effective. The total regulatory fee due would be $14 per 
license for the ten-year license term.\169\ For FY 2000, Amateur Vanity 
Call Sign applicants will again pay a $1.40 annual regulatory fee per 
call sign, payable for an entire ten-year term at the time of 
application for a new, renewal or reinstatement license. The total 
regulatory fee due is $14 per call sign for the ten-year license term.
---------------------------------------------------------------------------

    \169\ Section 9(h) exempts ``amateur radio operator licenses 
under part 97 of the Commission's rules (47 CFR part 97)'' from the 
requirement. However, section 9(g)'s fee schedule explicitly 
includes ``Amateur vanity call signs'' as a category subject to the 
payment of a regulatory fee.
---------------------------------------------------------------------------

d. Commercial Wireless Radio Services
    14. Commercial Mobile Radio Services (CMRS) Mobile Services: The 
Commercial Mobile Radio Service (CMRS) is an ``umbrella'' descriptive 
term attributed to various existing broadband services authorized to 
provide interconnected mobile radio services for profit to the public, 
or to such classes of eligible users as to be effectively available to 
a substantial portion of the public. CMRS Mobile Services include 
certain licensees which formerly were licensed as part of the Private 
Radio Services (e.g., Specialized Mobile Radio Services) and others 
formerly licensed as part of the Common Carrier Radio Services (e.g., 
Public Mobile Services and Cellular Radio Service). While specific 
rules pertaining to each covered service remain in separate parts 22, 
24, 27, 80 and 90, general rules for CMRS are contained in part 20. 
CMRS Mobile Services will include: Specialized Mobile Radio Services 
(part 90); \170\ Broadband Personal Communications Services (part 24), 
Public Coast Stations (part 80); Public Mobile Radio (Cellular, 800 MHz 
Air-Ground Radiotelephone, and Offshore Radio Services) (part 22); and 
Wireless Communications Service (part 27). Each licensee in this group 
will pay an annual regulatory fee for each mobile or cellular unit 
(mobile or telephone number), assigned to its customers, including 
resellers of its

[[Page 19600]]

services. For FY 2000, the regulatory fee is $.31 per unit.
---------------------------------------------------------------------------

    \170\ This category does not include licensees of private 
shared-use 220 MHz and 470 MHz and above in the Specialized Mobile 
Radio (SMR) service who have elected to remain non-commercial. Those 
who have elected not to change to the Commercial Mobile Radio 
Service (CMRS) are referred to paragraph 4 of this Attachment.
---------------------------------------------------------------------------

    15. Commercial Mobile Radio Services (CMRS) Messaging Services: The 
Commercial Mobile Radio Service (CMRS) is an ``umbrella'' descriptive 
term attributed to various existing narrowband services authorized to 
provide interconnected mobile radio services for profit to the public, 
or to such classes of eligible users as to be effectively available to 
a substantial portion of the public. CMRS Messaging Services include 
certain licensees which formerly were licensed as part of the Private 
Radio Services (e.g., Private Paging and Radiotelephone Service), 
licensees formerly licensed as part of the Common Carrier Radio 
Services (e.g., Public Mobile One-Way Paging), licensees of Narrowband 
Personal Communications Service (PCS) (e.g., one-way and two-way 
paging), and 220-222 MHz Band and Interconnected Business Radio 
Service. While specific rules pertaining to each covered service remain 
in separate parts 22, 24 and 90, general rules for CMRS are contained 
in part 20. Each licensee in the CMRS Messaging Services will pay an 
annual regulatory fee for each unit (pager, telephone number, or 
mobile) assigned to its customers, including resellers of its services. 
For FY 2000, the regulatory fee is $.04 per unit.
    16. Finally, we are reiterating our definition of CMRS payment 
units to make it clear that fees are assessable on each PCS or cellular 
telephone and each one-way or two-way pager capable of receiving or 
transmitting information, whether or not the unit is ``active'' on the 
``as-of'' date for payment of these fees. The unit becomes ``feeable'' 
if the end user or assignee of the unit has possession of the unit and 
the unit is capable of transmitting or receiving voice or non-voice 
messages or data and the unit is either owned and operated by the 
licensee of the CMRS system or a reseller, or the end user of a unit 
has a contractual agreement for the provision of a CMRS service from a 
licensee of a CMRS system or a reseller of a CMRS service. The 
responsible payer of the regulatory fee is the CMRS licensee. For 
example, John Doe purchases a pager and contractually obtains paging 
services from Paging Licensee X. Paging Licensee X is responsible for 
paying the applicable regulatory fee for this unit. Likewise, Cellular 
Licensee Y donates cellular phones to a high school and the high school 
either pays for or obtains free cellular service from Cellular Licensee 
Y. In this situation, Cellular Licensee Y is responsible for paying the 
applicable regulatory fees for these units.

2. Mass Media Services

    17. The regulatory fees for the Mass Media fee category apply to 
broadcast licensees and permittees. Noncommercial Educational 
Broadcasters are exempt from regulatory fees.
a. Commercial Radio
    18. These categories include licensed Commercial AM (Classes A, B, 
C, and D) and FM (Classes A, B, B1, C, C1, C2, and C3) Radio Stations 
operating under part 73 of the Commission's Rules.\171\ We have 
combined class of station and city grade contour population data to 
formulate a schedule of radio fees which differentiate between stations 
based on class of station and population served. In general, higher 
class stations and stations in metropolitan areas will pay higher fees 
than lower class stations and stations located in rural areas. The 
specific fee that a station must pay is determined by where it ranks 
after weighting its fee requirement (determined by class of station) 
with its population. The regulatory fee classifications for Radio 
Stations for FY 2000 are as follows:
---------------------------------------------------------------------------

    \171\ The Commission acknowledges that certain stations 
operating in Puerto Rico and Guam have been assigned a higher level 
station class than would be expected if the station were located on 
the mainland. Although this results in a higher regulatory fee, we 
believe that the increased interference protection associated with 
the higher station class is necessary and justifies the fee.

                                                          FY 2000 Radio Station Regulatory Fees
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                           FM classes A,   FM classes B,
                    Population served                       AM class A      AM class B      AM class C      AM class D        B1 & C3       C, C1 & C2
--------------------------------------------------------------------------------------------------------------------------------------------------------
20,000..................................................             400             300             200             250             300             400
20,001-50,000...........................................             800             625             300             425             625             800
50,001-125,000..........................................           1,325             850             425             650             850           1,325
125,001-400,000.........................................           1,950           1,350             625             775           1,350           1,950
400,001-1,000,000.......................................           2,725           2,200           1,200           1,450           2,200           2,725
>1,000,000..............................................           4,375           3,575           1,725           2,225           3,575           4,375
--------------------------------------------------------------------------------------------------------------------------------------------------------

    19. Licensees may determine the appropriate fee payment by 
referring to a list which will be provided as an attachment to the 
final Report and Order in this proceeding. This same information will 
be available on the FCC's internet world wide web site (http://www.fcc.gov) by calling the FCC's National Call Center (1-888-225-
5322), and may be included in the Public Notices mailed to each 
licensee for which we have a current address on file (Note: Non-receipt 
of a Public Notice does not relieve a licensee of its obligation to 
submit its regulatory fee payment).
b. Construction Permits--Commercial AM Radio
    20. This category includes holders of permits to construct new 
Commercial AM Stations. For FY 2000, permittees will pay a fee of $250 
for each permit held. Upon issuance of an operating license, this fee 
would no longer be applicable and licensees would be required to pay 
the applicable fee for the designated group within which the station 
appears.
c. Construction Permits--Commercial FM Radio
    This category includes holders of permits to construct new 
Commercial FM Stations. For FY 2000, permittees will pay a fee of $755 
for each permit held. Upon issuance of an operating license, this fee 
would no longer be applicable. Instead, licensees would pay a 
regulatory fee based upon the designated group within which the station 
appears.
d. Commercial Television Stations
    22. This category includes licensed Commercial VHF and UHF 
Television Stations covered under part 73 of the Commission's Rules, 
except commonly owned Television Satellite Stations, addressed 
separately below. Markets are Nielsen Designated Market Areas (DMA) as 
listed in the Television&Cable Factbook, Stations Volume No. 68, 2000

[[Page 19601]]

Edition, Warren Publishing, Inc. The fees for each category of station 
are as follows:

VHF Markets 1-10--$39,950
VHF Markets 11-25--33,275
VHF Markets 26-50--22,750
VHF Markets 51-100--12,750
VHF Remaining Markets--3,300
UHF Markets 1-10--$15,075
UHF Markets 11-25--11,425
UHF Markets 26-50--7,075
UHF Markets 51-100--4,225
UHF Remaining Markets--1,150
e. Commercial Television Satellite Stations
    23. Commonly owned Television Satellite Stations in any market 
(authorized pursuant to Note 5 of Sec. 73.3555 of the Commission's 
Rules) that retransmit programming of the primary station are assessed 
a fee of $1,250 annually. Those stations designated as Television 
Satellite Stations in the 2000 Edition of the Television and Cable 
Factbook are subject to the fee applicable to Television Satellite 
Stations. All other television licensees are subject to the regulatory 
fee payment required for their class of station and market.
f. Construction Permits--Commercial VHF Television Stations
    24. This category includes holders of permits to construct new 
Commercial VHF Television Stations. For FY 2000, VHF permittees will 
pay an annual regulatory fee of $2,700. Upon issuance of an operating 
license, this fee would no longer be applicable. Instead, licensees 
would pay a fee based upon the designated market of the station.
g. Construction Permits--Commercial UHF Television Stations
    25. This category includes holders of permits to construct new UHF 
Television Stations. For FY 2000, UHF Television permittees will pay an 
annual regulatory fee of $2,800. Upon issuance of an operating license, 
this fee would no longer be applicable. Instead, licensees would pay a 
fee based upon the designated market of the station.
h. Construction Permits--Satellite Television Stations
    26. The fee for UHF and VHF Television Satellite Station 
construction permits for FY 2000 is $445. An individual regulatory fee 
payment is to be made for each Television Satellite Station 
construction permit held.
i. Low Power Television, FM Translator and Booster Stations, TV 
Translator and Booster Stations
    27. This category includes Low Power UHF/VHF Television stations 
operating under part 74 of the Commission's Rules with a transmitter 
power output limited to 1 kW for a UHF facility and, generally, 0.01 kW 
for a VHF facility. Low Power Television (LPTV) stations may retransmit 
the programs and signals of a TV Broadcast Station, originate 
programming, and/or operate as a subscription service. This category 
also includes translators and boosters operating under part 74 which 
rebroadcast the signals of full service stations on a frequency 
different from the parent station (translators) or on the same 
frequency (boosters). The stations in this category are secondary to 
full service stations in terms of frequency priority. We have also 
received requests for waivers of the regulatory fees from operators of 
community based Translators. These Translators are generally not 
affiliated with commercial broadcasters, are nonprofit, nonprofitable, 
or only marginally profitable, serve small rural communities, and are 
supported financially by the residents of the communities served. We 
are aware of the difficulties these Translators have in paying even 
minimal regulatory fees, and we have addressed those concerns in the 
ruling on reconsideration of the FY 1994 Report and Order. Community 
based Translators are exempt from regulatory fees. For FY 2000, 
licensees in low power television, FM translator and booster, and TV 
translator and booster category will pay a regulatory fee of $280 for 
each license held.
j. Broadcast Auxiliary Stations
    28. This category includes licensees of remote pickup stations 
(either base or mobile) and associated accessory equipment authorized 
pursuant to a single license, Aural Broadcast Auxiliary Stations 
(Studio Transmitter Link and Inter-City Relay) and Television Broadcast 
Auxiliary Stations (TV Pickup, TV Studio Transmitter Link, TV Relay) 
authorized under part 74 of the Commission's Rules. Auxiliary Stations 
are generally associated with a particular television or radio 
broadcast station or cable television system. This category does not 
include translators and boosters (see paragraph 26 infra). For FY 2000, 
licensees of Commercial Auxiliary Stations will pay a $12 annual 
regulatory fee on a per call sign basis.
k. Multipoint Distribution Service
    29. This category includes Multipoint Distribution Service (MDS), 
Local Multipoint Distribution (LMDS), and Multichannel Multipoint 
Distribution Service (MMDS), authorized under parts 21 and 101 of the 
Commission's Rules to use microwave frequencies for video and data 
distribution within the United States. For FY 2000, MDS, LMDS, and MMDS 
stations will pay an annual regulatory fee of $275 per call sign.

3. Cable Services

a. Cable Television Systems
    30. This category includes operators of Cable Television Systems, 
providing or distributing programming or other services to subscribers 
under part 76 of the Commission's Rules. For FY 2000, Cable Systems 
will pay a regulatory fee of $.47 per subscriber.\172\ Payments for 
Cable Systems are to be made on a per subscriber basis as of December 
31, 1999. Cable Systems should determine their subscriber numbers by 
calculating the number of single family dwellings, the number of 
individual households in multiple dwelling units, e.g., apartments, 
condominiums, mobile home parks, etc., paying at the basic subscriber 
rate, the number of bulk rate customers and the number of courtesy or 
fee customers. In order to determine the number of bulk rate 
subscribers, a system should divide its bulk rate charge by the annual 
subscription rate for individual households. See FY 1994 Report and 
Order, Appendix B at paragraph 31.
---------------------------------------------------------------------------

    \172\ Cable systems are to pay their regulatory fees on a per 
subscriber basis rather than per 1,000 subscribers as set forth in 
the statutory fee schedule. See FY 1994 Report and Order at 
paragraph 100.
---------------------------------------------------------------------------

b. Cable Antenna Relay Service
    31. This category includes Cable Antenna Relay Service (CARS) 
stations used to transmit television and related audio signals, signals 
of AM and FM Broadcast Stations, and cablecasting from the point of 
reception to a terminal point from where the signals are distributed to 
the public by a Cable Television System. For FY 2000, licensees will 
pay an annual regulatory fee of $53 per CARS license.

4. Common Carrier Services

a. Commercial Microwave (Domestic Public Fixed Radio Service)
    32. This category includes licensees in the Point-to-Point 
Microwave Radio Service, Local Television Transmission Radio Service, 
and Digital Electronic Message Service, authorized under part 101 of 
the Commission's Rules to use microwave frequencies for video and data 
distribution within the United States. These services are now included 
in the Microwave category (see paragraph 5 infra).

[[Page 19602]]

b. Interstate Telephone Service Providers
    33. This category includes all providers of local and telephone 
services to end users. Covered services include the interstate and 
international portion of wireline and fixed wireless local exchange 
service, local and long distance private line services for both voice 
and data, dedicated and network packet and packet-like services, long 
distance message telephone services, and other local and toll services. 
Providers of such services are referred to herein as ``interstate 
telephone service providers''.
    Interstate service providers include CAP/CLECs, incumbent local 
exchange carriers (local telephone operating companies), Interexchange 
carriers (long distance telephone companies), wireless telephone 
service carriers that provide fixed local or toll services (Cellular, 
Personal Communications Service, and Specialized Mobile Radio), local 
resellers, OSPs (operator service providers that enable customers to 
make away from home calls and to place calls with alternative billing 
arrangements), payphone service providers, pre-paid card, private 
service providers, satellite carriers that provide fixed local or 
message toll services, shared tenant service providers, toll resellers, 
and other local and other service providers.
    In order to avoid imposing any double payment burden on resellers, 
we base the regulatory fee on end-user revenues. Accordingly, 
interstate telephone service providers, including resellers, must 
submit fee payments based upon their proportionate share of interstate 
and international end-user revenues for local and toll services. We use 
the terms end-user revenues, local service and toll service, based on 
the methodology used for calculating contributions to the Universal 
Service support mechanisms.\173\ Interstate telephone service providers 
do not pay the Common Carrier regulatory fee on revenue from the 
provision of intrastate local and toll services, wireless monthly and 
local message services, satellite toll services, carrier's carrier 
telecommunications services, customer premises equipment, Internet 
service and non-telecommunications services. For FY 2000, carriers must 
multiply their interstate and international revenue from subject local 
and toll services by the factor 0.00117 to determine the appropriate 
fee for this category of service. Regulatees may want to use the 
following worksheet to determine their fee payment:
---------------------------------------------------------------------------

    \173\ See 1998 Biennial Regulatory Review--Streamlined 
Contributor Reporting Requirements Associated with Administration of 
Telecommunications Relay Services, North American Numbering Plan, 
Local Number Portability, and Universal Service Support Mechanisms, 
Report and Order, FCC 99-175, CC Docket No. 98-171 (rel. July 14, 
1999), 64 FR 41320 (Jul. 30, 1999) (Contributor Reporting 
Requirements Order).

                    Calendar 1999 Revenue Information
                     [Show amounts in whole dollars]
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1..............................  Service provided by      ..............
                                  U.S. carriers that
                                  both originates and
                                  terminates in foreign
                                  points. Form 499-A
                                  Line 412(e).
2..............................  Interstate end-user      ..............
                                  revenue from all
                                  telecommunications
                                  services. Form 499-A
                                  Line 420(d).
3..............................  International end-user   ..............
                                  revenue from all
                                  telecommunications
                                  services exception
                                  international-to-
                                  international. Form
                                  499-A Line 420(e).
4..............................  Total interstate and     ..............
                                  international end-user
                                  revenues (Sum of Lines
                                  1, 2 and 3).
5..............................  End user interstate      ..............
                                  mobile service monthly
                                  and activation
                                  charges. Form 499-A
                                  Line 409(d).
6..............................  End user international   ..............
                                  mobile service monthly
                                  and activation
                                  charges. Form 499-A
                                  Line 409(e).
7..............................  End user interstate      ..............
                                  mobile service message
                                  charges including
                                  roaming charges but
                                  excluding toll
                                  charges. Form 499-A
                                  Line 410(d).
8..............................  End user international   ..............
                                  mobile service message
                                  charges including
                                  roaming charges but
                                  excluding toll
                                  charges. Form 499-A
                                  Line 410(e).
9..............................  End user interstate      ..............
                                  satellite service.
                                  Form 499-A Line 416(d).
10.............................  End user international   ..............
                                  satellite service.
                                  Form 499-A Line 416(e).
11.............................  Total end user           ..............
                                  interstate and
                                  international mobile
                                  and satellite service
                                  revenue. (Sum lines 5
                                  through 10).
12.............................  Total end-user           ..............
                                  interstate and
                                  international revenues
                                  from local and subject
                                  toll services (Line 4
                                  minus Line 11).
13.............................  Common carrier fee               .00117
                                  factor.
14.............................  2000 Regulatory Fee      ..............
                                  (Line 12 times Line
                                  13) 1.
------------------------------------------------------------------------
1 You are exempt from filing if the amount on line 14 is less than $10.

5. International Services

a. Earth Stations
    34. Very Small Aperture Terminal (VSAT) Earth Stations, equivalent 
C-Band Earth Stations and antennas, and earth station systems comprised 
of very small aperture terminals operate in the 12 and 14 GHz bands and 
provide a variety of communications services to other stations in the 
network. VSAT systems consist of a network of technically-identical 
small Fixed-Satellite Earth Stations which often include a larger hub 
station. VSAT Earth Stations and C-Band Equivalent Earth Stations are 
authorized pursuant to part 25 of the Commission's Rules. Mobile 
Satellite Earth Stations, operating pursuant to part 25 of the 
Commission's Rules under blanket licenses for mobile antennas 
(transceivers), are smaller than one meter and provide voice or data 
communications, including position location information for mobile 
platforms such as cars, buses, or trucks.\174\ Fixed-Satellite 
Transmit/Receive and Transmit-Only Earth Station antennas, authorized 
or registered under part 25 of the Commission's Rules, are operated by 
private and public carriers to provide telephone, television, data, and 
other forms of communications. Included in this category are telemetry, 
tracking and control (TT&C) earth stations, and earth station uplinks. 
For FY 2000, licensees of VSATs, Mobile Satellite Earth Stations, and 
Fixed-Satellite Transmit/Receive and Transmit-Only Earth Stations will 
pay a fee of $175 per authorization or registration as well as

[[Page 19603]]

a separate fee of $175 for each associated Hub Station.
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    \174\ Mobile earth stations are hand-held or vehicle-based units 
capable of operation while the operator or vehicle is in motion. In 
contrast, transportable units are moved to a fixed location and 
operate in a stationary (fixed) mode. Both are assessed the same 
regulatory fee for FY 2000.
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    35. Receive-only earth stations. For FY 2000, there is no 
regulatory fee for receive-only earth stations.
b. Space Stations (Geostationary Orbit)
    36. Geostationary Orbit (also referred to as Geosynchronous) Space 
Stations are domestic and international satellites positioned in orbit 
to remain approximately fixed relative to the earth. Most are 
authorized under part 25 of the Commission's Rules to provide 
communications between satellites and earth stations on a common 
carrier and/or private carrier basis. In addition, this category 
includes Direct Broadcast Satellite (DBS) Service which includes space 
stations authorized under part 100 of the Commission's rules to 
transmit or re-transmit signals for direct reception by the general 
public encompassing both individual and community reception. For FY 
2000, entities authorized to operate geostationary space stations 
(including DBS satellites) will be assessed an annual regulatory fee of 
$94,650 per operational station in orbit. Payment is required for any 
geostationary satellite that has been launched and tested and is 
authorized to provide service.
c. Space Stations (Non-Geostationary Orbit)
    37. Non-Geostationary Orbit Systems (such as Low Earth Orbit (LEO) 
Systems) are space stations that orbit the earth in non-geosynchronous 
orbit. They are authorized under part 25 of the Commission's rules to 
provide communications between satellites and earth stations on a 
common carrier and/or private carrier basis. For FY 2000, entities 
authorized to operate Non-Geostationary Orbit Systems (NGSOs) will be 
assessed an annual regulatory fee of $175,250 per operational system in 
orbit. Payment is required for any NGSO System that has one or more 
operational satellites operational. In our FY 1997 Report and Order at 
paragraph 75 we retained our requirement that licensees of LEOs pay the 
LEO regulatory fee upon their certification of operation of a single 
satellite pursuant to section 25.120(d). We require payment of this fee 
following commencement of operations of a system's first satellite to 
insure that we recover our regulatory costs related to LEO systems from 
licensees of these systems as early as possible so that other 
regulatees are not burdened with these costs any longer than necessary. 
Because section 25.120(d) has significant implications beyond 
regulatory fees (such as whether the entire planned cluster is 
operational in accordance with the terms and conditions of the license) 
we are clarifying our current definition of an operational LEO 
satellite to prevent misinterpretation of our intent as follows:

    Licensees of Non-Geostationary Satellite Systems (such as LEOs) 
are assessed a regulatory fee upon the commencement of operation of 
a system's first satellite as reported annually pursuant to 
Secs. 25.142(c), 25.143(e), 25.145(g), or upon certification of 
operation of a single satellite pursuant to Sec. 25.120(d).
d. International Bearer Circuits
    38. Regulatory fees for International Bearer Circuits are to be 
paid by facilities-based common carriers (either domestic or 
international) activating the circuit in any transmission facility for 
the provision of service to an end user or resale carrier. Payment of 
the fee for bearer circuits by non-common carrier submarine cable 
operators is required for circuits sold on an indefeasible right of use 
(IRU) basis or leased to any customer, including themselves or their 
affiliates, other than an international common carrier authorized by 
the Commission to provide U.S. international common carrier services. 
Compare FY 1994 Report and Order at 5367. Payment of the international 
bearer circuit fee is also required by non-common carrier satellite 
operators for circuits sold or leased to any customer, including 
themselves or their affiliates, other than an international common 
carrier authorized by the Commission to provide U.S. international 
common carrier services. The fee is based upon active 64 kbps circuits, 
or equivalent circuits. Under this formulation, 64 kbps circuits or 
their equivalent will be assessed a fee. Equivalent circuits include 
the 64 kbps circuit equivalent of larger bit stream circuits. For 
example, the 64 kbps circuit equivalent of a 2.048 Mbps circuit is 30 
64 kbps circuits. Analog circuits such as 3 and 4 kHz circuits used for 
international service are also included as 64 kbps circuits. However, 
circuits derived from 64 kbps circuits by the use of digital circuit 
multiplication systems are not equivalent 64 kbps circuits. Such 
circuits are not subject to fees. Only the 64 kbps circuit from which 
they have been derived will be subject to payment of a fee. For FY 
2000, the regulatory fee is $7 for each active 64 kbps circuit or 
equivalent. For analog television channels we will assess fees as 
follows:

------------------------------------------------------------------------
                                                              Number of
                                                              equivalent
           Analog television channel size in MHz               64 kbps
                                                               circuits
------------------------------------------------------------------------
36.........................................................          630
24.........................................................          288
18.........................................................          240
------------------------------------------------------------------------

e. International Public Fixed
    39. This fee category includes common carriers authorized under 
part 23 of the Commission's Rules to provide radio communications 
between the United States and a foreign point via microwave or HF 
troposcatter systems, other than satellites and satellite earth 
stations, but not including service between the United States and 
Mexico and the United States and Canada using frequencies above 72 MHz. 
For FY 2000, International Public Fixed Radio Service licensees will 
pay a $395 annual regulatory fee per call sign.
f. International (HF) Broadcast
    40. This category covers International Broadcast Stations licensed 
under part 73 of the Commission's Rules to operate on frequencies in 
the 5,950 kHz to 26,100 kHz range to provide service to the general 
public in foreign countries. For FY 2000, International HF Broadcast 
Stations will pay an annual regulatory fee of $505 per station license.

Attachment G: Description of FCC Activities

    Authorization of Service: The authorization or licensing of radio 
stations, telecommunications equipment, and radio operators, as well as 
the authorization of common carrier and other services and facilities. 
Includes policy direction, program development, legal services, and 
executive direction, as well as support services associated with 
authorization activities.\175\
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    \175\ Although Authorization of Service is described in this 
exhibit, it is not one of the activities included as a feeable 
activity for regulatory fee purposes pursuant to section 9(a)(1) of 
the Act. 47 U.S.C. 159(a)(1).
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    Policy and Rulemaking: Formal inquiries, rulemaking proceedings to 
establish or amend the Commission's rules and regulations, action on 
petitions for rulemaking, and requests for rule interpretations or 
waivers; economic studies and analyses; spectrum planning, modeling, 
propagation-interference analyses, and allocation; and development of 
equipment standards. Includes policy direction, program development, 
legal services, and executive direction, as well as support services 
associated with policy and rulemaking activities.

[[Page 19604]]

    Enforcement: Enforcement of the Commission's rules, regulations and 
authorizations, including investigations, inspections, compliance 
monitoring, and sanctions of all types. Also includes the receipt and 
disposition of formal and informal complaints regarding common carrier 
rates and services, the review and acceptance/rejection of carrier 
tariffs, and the review, prescription and audit of carrier accounting 
practices. Includes policy direction, program development, legal 
services, and executive direction, as well as support services 
associated with enforcement activities.
    Public Information Services: The publication and dissemination of 
Commission decisions and actions, and related activities; public 
reference and library services; the duplication and dissemination of 
Commission records and databases; the receipt and disposition of public 
inquiries; consumer, small business, and public assistance; and public 
affairs and media relations. Includes policy direction, program 
development, legal services, and executive direction, as well as 
support services associated with public information activities.

Attachment H: Factors, Measurements and Calculations That Go Into 
Determining Station Signal Contours and Associated Population 
Coverages

AM Stations

    Specific information on each day tower, including field ratio, 
phasing, spacing and orientation was retrieved, as well as the 
theoretical pattern RMS figure (mV/m @ 1 km) for the antenna system. 
The standard, or modified standard if pertinent, horizontal plane 
radiation pattern was calculated using techniques and methods specified 
in sections 73.150 and 73.152 of the Commission's rules.\176\ Radiation 
values were calculated for each of 72 radials around the transmitter 
site (every 5 degrees of azimuth). Next, estimated soil conductivity 
data was retrieved from a database representing the information in FCC 
Figure M3. Using the calculated horizontal radiation values, and the 
retrieved soil conductivity data, the distance to the city grade (5 mV/
m) contour was predicted for each of the 72 radials. The resulting 
distance to city grade contours were used to form a geographical 
polygon. Population counting was accomplished by determining which 1990 
block centroids were contained in the polygon. The sum of the 
population figures for all enclosed blocks represents the total 
population for the predicted city grade coverage area.
---------------------------------------------------------------------------

    \176\ 47 U.S.C. 73.150 and 73.152.
---------------------------------------------------------------------------

FM Stations

    The maximum of the horizontal and vertical HAAT (m) and ERP (kW) 
was used. Where the antenna HAMSL was available, it was used in lieu of 
the overall HAAT figure to calculate specific HAAT figures for each of 
72 radials under study. Any available directional pattern information 
was applied as well, to produce a radial-specific ERP figure. The HAAT 
and ERP figures were used in conjunction with the propagation curves 
specified in section 73.313 of the Commission's rules to predict the 
distance to the city grade (70 dBuV/m or 3.17 mV/m) contour for each of 
the 72 radials.\177\ The resulting distance to city grade contours were 
used to form a geographical polygon. Population counting was 
accomplished by determining which 1990 block centroids were contained 
in the polygon. The sum of the population figures for all enclosed 
blocks represents the total population for the predicted city grade 
coverage area.

    \177\ 47 U.S.C. 73.313.
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[FR Doc. 00-8846 Filed 4-10-00; 8:45 am]
BILLING CODE 6712-01-P